STOCK PURCHASE: The purchase of a sufficient n
Post# of 2219
The purchase of a sufficient number of voting shares of a corporation's stock, enabling the acquiring corporation to exercise control over the target corporation.
A stock purchase is generally facilitated by a tender offer to the target corporation's shareholders. The tender offer is publicly advertised, available to all shareholders, and offers to pay a higher-than-market price (premium) for shares of the target corporation.
Exchange Tender Offer: An offer to give (exchange) shares in the acquiring corporation in exchange for shares in the target corporation.
Cash Tender Offer: Duh! An offer to pay cash in exchange for shares of the target corporation.
A tender offer may be conditioned on receiving a specified number of outstanding shares in the target corporation by a specified date.
The terms and duration of, and the circumstances underlying, a tender offer are strictly regulated by federal securities laws. In addition, most states impose additional regulations on tender offers.