In a tender offer, the offer price for the target firm stock is generally set

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In a tender offer, the offer price for the target firm stock is generally set above its market price to incentivize shareholders to sell their shares. The higher the offer price, the more likely shareholders are to agree to the transaction. Setting the offer price below market price would be unlikely to attract enough shareholder interest to acquire a controlling stake in the target firm.

In a Tender Offer, the Offer Price for the Target