tender offer: meaning, definition, pronunciation and examples
C1formal, technical, business
Quick answer
What does “tender offer” mean?
A public proposal by one company to purchase the shares of another company directly from its shareholders at a specified price, usually above the market price, often as part of a takeover attempt.
Audio
Pronunciation
Definition
Meaning and Definition
A public proposal by one company to purchase the shares of another company directly from its shareholders at a specified price, usually above the market price, often as part of a takeover attempt.
In corporate finance, a formal bid to buy some or all of shareholders' stock in a corporation, typically to gain control. The offer is made publicly and shareholders can decide whether to tender (offer) their shares for sale at the proposed price.
Dialectal Variation
British vs American Usage
Differences
No significant differences in meaning; both use the term identically in corporate contexts. Spelling remains 'tender offer' in both varieties.
Connotations
Neutral technical term in both; implies a formal, structured acquisition process.
Frequency
Equally common in UK and US financial/business English.
Grammar
How to Use “tender offer” in a Sentence
[Company] launched a tender offer for [target company]The board recommended accepting the tender offerShareholders must decide whether to tender their shares in response to the offerVocabulary
Collocations
Examples
Examples of “tender offer” in a Sentence
verb
British English
- The company may tender an offer for the outstanding shares.
- They decided to tender for the business through a formal offer.
American English
- The firm tendered an offer to purchase all shares at a premium.
- We are tendering an offer to acquire the remaining stock.
adverb
British English
- The shares were acquired tender-offer-style.
- They proceeded tender-offer-quickly to secure control.
American English
- The acquisition was done tender-offer-fast.
- They moved tender-offer-aggressively to outbid rivals.
adjective
British English
- The tender-offer process is regulated by the Takeover Panel.
- They issued a tender-offer document to all shareholders.
American English
- The tender-offer price was set 20% above market value.
- A tender-offer announcement was filed with the SEC.
Usage
Meaning in Context
Business
The board is considering a tender offer to acquire a competitor.
Academic
The paper analyses the effects of tender offers on shareholder value.
Everyday
Rarely used in everyday conversation; mostly in financial news.
Technical
A tender offer must comply with SEC regulations regarding disclosure and timing.
Vocabulary
Synonyms of “tender offer”
Strong
Neutral
Weak
Vocabulary
Antonyms of “tender offer”
Watch out
Common Mistakes When Using “tender offer”
- Using 'tender offer' to mean a gentle request (wrong) | Confusing with 'tender' as an adjective | Misspelling as 'tender offer' with incorrect spacing
FAQ
Frequently Asked Questions
No, it can be hostile if the target company's board opposes it.
Yes, if they own shares in the target company, they can choose to tender their shares.
The offer may fail or be withdrawn, and the bidding company might not gain control.
A tender offer is a direct purchase of shares from shareholders, while a merger involves combining companies through agreement between boards.
A public proposal by one company to purchase the shares of another company directly from its shareholders at a specified price, usually above the market price, often as part of a takeover attempt.
Tender offer is usually formal, technical, business in register.
Tender offer: in British English it is pronounced /ˌtendər ˈɒfə(r)/, and in American English it is pronounced /ˌtendər ˈɔːfər/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “go hostile (with a tender offer)”
- “tender your shares”
Learning
Memory Aids
Mnemonic
Think: a company TENDERly OFFERing to buy your shares – but it's a formal business move, not a gentle request.
Conceptual Metaphor
A PUBLIC AUCTION for company ownership
Practice
Quiz
What is a 'tender offer' primarily associated with?