General offer made publicly and directly to a firm's shareholders to buy their stock at a price well above the current market price. The New York Times Financial Glossary
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A company making a tender offer requires applicants to state the number of securities they require plus the price they are prepared to pay for them. Once all applications have been received, the company fixes a single 'striking price' at which the securities will be allotted to applicants at that price or higher. Also known as an offer for subscription.
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tender offer UK US noun [C] FINANCE, STOCK MARKET
► an occasion when a company offers to buy its own or another company's shares from existing shareholders at a particular price: »
The company's tender offer to purchase all outstanding shares of stock expires Monday.
make a tender offer »They made a tender offer to shareholders yesterday for 4.78m shares at 165p.
»The company launched a hostile 500p a share tender offer.
► an occasion when a company sells new shares to those who make offers for them above a particular lowest price. The company calculates the strike price (= final price to be paid) in relation to the total demand and the prices offered.
Financial and business terms. 2012.