Enchilada Inc. seeks to purchase a substantial number of the voting shares of Fajita Inc. Enchilada deals directly with the shareholders of Fajita. Enchilada offers a price higher than the market price of Fajita's shares. This is

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Enchilada's offering a price higher than the market price of Fajita's shares directly to its shareholders is a tender offer. A tender offer is a public offer made by a company or a third party to the shareholders of a publicly traded company to buy their shares for a premium price, usually above the market price. The purpose of a tender offer is usually to gain control of the target company by acquiring a substantial number of its shares.