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tender offer definition - legal

n

A corporate law offer to buy all shares of a corporationÂ’s stock up to a certain number by shareholders at a fixed price (usually higher than market value) within a certain period of time. Tender offers are usually precursors to corporate takeover moves. The Williams Act of 1968 was passed by Congress to regulate tender offers so that shareholders can make an informed decision about whether or not to tender their shares for sale.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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