Tender Offer Definition

A public offer to purchase a block of stock in a corporation, often the controlling interest, within a specified period and at a stipulated price, usually well above the existing market price.

A corporate law offer to buy all shares of a corporation’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.