Tender Offer
Definition
A tender offer is a public offer to buy shares directly from a company’s shareholders at a stated price, usually at a premium to the market. It lets an acquirer build or take control without the board’s cooperation, which makes it the classic weapon of the hostile bidder.
In practice
US tender offers are governed by the Williams Act, which forces disclosure and minimum offer periods so shareholders are not stampeded. The credible threat of a tender offer is often enough to bring a board to the table.