Pronunciation: [tˈɛndəɹ ˈɒfə] (IPA) 
The spelling of "tender offer" can be explained using IPA phonetic transcription. /ˈtɛndər ˈɔfər/ is how it is pronounced. The first syllable "tend" is pronounced with the "e" sound as in "bet" and "d" sound. The second syllable "er" is pronounced as "ər" sound, which is a neutral vowel sound. The word "offer" is pronounced with the "o" sound as in "hot" and "f" sound. So, "tender offer" is pronounced as "TEND-ər AW-fər".
A tender offer refers to a proposal or invitation made by an individual or company, called the acquirer, to purchase a certain number of shares or securities from the shareholders of another company, known as the target company. This offer is typically a public announcement made to all the shareholders of the target company.
In a tender offer, the acquirer specifies a price at which they are willing to buy the shares, along with other terms and conditions that shareholders need to meet in order to participate in the offer. The offer period is usually a specific timeframe during which shareholders can decide whether they want to accept or decline the acquirer's proposal.
Tender offers are often used as a strategy to gain control or majority ownership in a target company. The acquirer aims to entice shareholders to sell their shares by offering a premium price compared to the market value of the shares. If enough shareholders accept the tender offer and the acquirer acquires a significant percentage of the target company's shares, they may gain control of the company.
Tender offers are regulated by securities laws and are subject to the rules and regulations set by the governing authorities in the respective jurisdiction. The purpose of these regulations is to ensure transparency, fairness, and equal treatment of shareholders during the tender offer process.
The term "tender offer" originated in the world of finance and came into use in the mid-20th century. The word "tender" in this phrase refers to the act of offering something, typically in a formal or official manner.
The word "tender" itself comes from the Old French term "tendre", meaning "to stretch" or "to hold out". It later evolved to include the sense of extending or presenting something for acceptance or consideration.
In the context of a tender offer, it refers to the act of presenting an offer by one company to the shareholders of another company to purchase their shares at a specified price. This offer is often made directly by the acquiring company to the shareholders, bypassing the target company's management.
The use of the term "tender offer" highlights the formal and official nature of the offer, emphasizing that it is being presented in a structured and legal manner.
