self-tender: meaning, definition, pronunciation and examples
C2 (Very Low Frequency / Specialized)Formal, Technical, Financial
Quick answer
What does “self-tender” mean?
An offer by a publicly traded company to buy back some of its own shares from shareholders at a specified price, typically above market value.
Audio
Pronunciation
Definition
Meaning and Definition
An offer by a publicly traded company to buy back some of its own shares from shareholders at a specified price, typically above market value.
Primarily used in finance and corporate strategy to describe a company's voluntary action to repurchase its equity, often to consolidate ownership, increase share value, or defend against hostile takeovers. It's a formal, structured process governed by securities regulations.
Dialectal Variation
British vs American Usage
Differences
No significant difference in meaning. The term is standard in international financial English.
Connotations
Neutral financial terminology in both varieties. May carry connotations of corporate defense, shareholder value return, or financial engineering.
Frequency
Equally low frequency in both UK and US specialized financial discourse.
Grammar
How to Use “self-tender” in a Sentence
The company [verb: announced/launched/completed] a self-tender.A self-tender [verb: was announced/was oversubscribed].Vocabulary
Collocations
Examples
Examples of “self-tender” in a Sentence
noun
British English
- The board approved a self-tender to return excess capital to shareholders.
- Analysts questioned the timing of the self-tender.
American English
- The self-tender was oversubscribed, indicating strong shareholder interest.
- They used a self-tender as a poison pill against the activist investor.
Usage
Meaning in Context
Business
Used in corporate communications, financial news, and investor relations to describe a specific capital allocation strategy.
Academic
Found in finance, economics, and corporate governance literature discussing market signaling, capital structure, or takeover defenses.
Everyday
Virtually never used in everyday conversation.
Technical
Core term in securities law, investment banking, and equity market analysis.
Vocabulary
Synonyms of “self-tender”
Strong
Neutral
Weak
Vocabulary
Antonyms of “self-tender”
Watch out
Common Mistakes When Using “self-tender”
- Using it as a verb (e.g., 'The company will self-tender' is non-standard).
- Confusing it with a general 'share buyback' (a self-tender is one specific, public method).
- Spelling without the hyphen (self tender).
FAQ
Frequently Asked Questions
Not exactly. A self-tender is one specific, public, and time-bound method of share buyback where the company makes a formal offer to all shareholders. Other buybacks (like open market purchases) are different.
Shareholders who choose to sell receive cash, often at a premium. Remaining shareholders may benefit from a higher ownership percentage and potentially a higher share price if the market views the action positively.
A type of self-tender where the company specifies a range of prices, and shareholders indicate the price at which they are willing to sell. The company then buys the shares at the lowest price that allows it to purchase the desired number.
Yes. By buying shares at a premium, the company can make itself more expensive for a potential acquirer and reduce the number of shares available in the open market, consolidating control.
An offer by a publicly traded company to buy back some of its own shares from shareholders at a specified price, typically above market value.
Self-tender is usually formal, technical, financial in register.
Self-tender: in British English it is pronounced /ˌself ˈten.dər/, and in American English it is pronounced /ˌself ˈten.dɚ/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “To go Dutch (in a Dutch auction self-tender)”
Learning
Memory Aids
Mnemonic
Think: A company treats ITSELF ('self') to an offer ('tender') to buy its own shares back.
Conceptual Metaphor
CORPORATE ACTIONS ARE MARKET SIGNALS. The self-tender is a signal sent to the market about the company's self-perceived value.
Practice
Quiz
What is the primary purpose of a self-tender?