A tender offer can best be defined as:
A) A combination of firms that have been joined by merger, consolidation or acquisition.
B) The complete absorption of one company by another, where the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity.
C) A merger in which a new firm is created and both the acquired and acquiring firm cease to exist.
D) A public offer by one firm to directly buy the shares from another.
E) A corporate takeover bid communicated to the shareholders through direct mail.

Question

Quizplus · Accepted Answer

A tender offer involves one company making a public offer to buy the shares of another company directly from the shareholders, often at a premium to the market price.

A Tender Offer Can Best Be Defined As