Personal Finance & Money Asked by Claudia on May 14, 2021
Would someone be so kind to please answer me on two different questions:
First: I’m aware tender offer has something to do with getting the stocks directly from shareholders, according to some ratio, e.g. % of total value of stock with respect to the quantity of stocks. E.g. If ratio is lets say 80% then this would mean for the value of stocks e.g. 100M of whatever currency (note: value of stocks and NOT quantity!), the buyer/lender/investor funds 80M of funding. This seems to be involved in a term "tender offer" but what I don’t understand, as asked in the title of message, what is a difference, if any, "Tender Offer" and "Tender & Offer" ?
Second: Are there any firms, preferably within Europe, that help with tender offers and go in touch with the actual shareholders? Could you list few? I’m not referring to just professional appointment setters but firms with the actual experiences in locating and communicating with shareholders.
Thank you a lot!
Any brokerage should be able to put you in contact with shareholders to purchase shares, which is essentially a Tender Offer. Tender Offer is a set price that a purchaser of stock is willing to engage in a transaction. From Investopedia a tender offer is a bid to purchase some or all of the shareholders' stock in a corporation.
For example: if you own 100 shares of a company ABCD, if someone is trying to buy-out the company with cash, they will make a tender offer for the shareholder's shares at a set price, in our case say $10/share. The shareholder can agree to Tender their shares at the set price, $10, and will sign the contract to do so (usually digitally via a brokerage nowadays). The original shareholder will receive $1000 and the purchaser will receive the 100 shares.
I see no difference in "Tender Offer" and "Tender & Offer", unless "Tender & Offer" is referring to a cash and stock buyout (which I encourage you to read into as well).
If you are not a multi-million dollar investor or institution, there is no need or even way to set a Tender Offer on someone else's shares because retail investors can do that via the secondary market (retail trading brokerages like Fidelity, Robinhood, E-trade, etc).
For further info:
Tender Offer - Investopedia
European Brokerages
Tender - Investopedia
Stock or Cash? - Harvard Business Review
Answered by erikwilder on May 14, 2021
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