The Daily News published an ad today wherein it announced its desire to purchase shares of a competing newspaper, the Oil Town Gossip. Which one of the following terms is best described by this announcement?
A) Merger request
B) Consolidation
C) Tender offer
D) Spinoff
E) Divestiture

Question

Quizplus · Accepted Answer

The announcement by the Daily News to purchase shares of a competing newspaper, the Oil Town Gossip, best describes a tender offer. A tender offer is a public takeover bid made by a company to the shareholders of another company. The acquiring company offers to buy the shares from the target company's shareholders at a premium above the current market price.

The Daily News Published an Ad Today Wherein It Announced