tender offer

Definition 1

Bid or offer submitted in response to an invitation to bid (ITB) or request for tenders.

Definition 2

Formal, open offer by publicly traded corporation to buy back its own outstanding securities at a stated price and within a stated timeframe.

Definition 3

Formal, open offer by a private or publicly-traded corporation to the shareholders of a publicly-traded corporation to buy their shares usually at an attractive premium above the share current market price. Such tender offers are often a key element of a takeover strategy and are usually made subject to (1) the offerer (bidder) being able to acquire at least a minimum number of shares, and (2) automatic expiration of the offer after a certain maximum number of shares have been acquired.