Tender Offer
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The company or third party making the offer publicly announces the terms of the offer, including the purchase price per share and the number of shares being purchased. -
Shareholders of the target company are given a set period of time, usually several weeks, to decide whether to accept the offer and sell their shares. -
If a sufficient number of shareholders accept the offer, the company or third party making the offer will acquire the shares and become a controlling stakeholder in the target company or even the owner of the company. -
If the offer is not accepted by a sufficient number of shareholders, the offer will typically expire and the company or third party making the offer will not acquire any shares.