Tender Offer: It is a offer given by third party Or company to a target company's shareholders to sell their shares to third party or company with premium price of shares in a specified period of time with certain condition. The condition must be fulfilled to complete the tender offer. For example 70℅ shareholders are ready to sell their shares to accept this offer,But if less than 70% shareholders are willing to take this offer. In that case this offer is not valid. The tender offer is a step taken to merge or take over the another company. In this offer company pay cash to targeted company's shareholders or offer company's shares. If Company's offer it's shares to targeted company that is called exchange offer. Tender offer is a direct offer given to target company's shareholders without using any medium like any exchange organization. For example: XYZ Company issues a tender offer to PQR Company's shareholders to sell company's shares at Rs. 15 t...
This blog is totally for education purpose which helps to solve finance related numerical like time value of money, annuity ,perpetuity, technique of capital budgeting, cost of capital, working capital management and hire purchase etc.