Direct solicitation to the current stockholders for less than five percent of a firm's stock. The bidder's objective is to escape the provisions of SEC Regulation 14(e) which is triggered when an offer to purchase five percent or more of a firm's outstanding stock is made. Under this Regulation, all the SEC's tender offer rules aimed at preventing deceptive, fraudulent, and manipulative practices become applicable. These rules require the bidders to (1) disclose important information about themselves, (2) disclose the terms of the offer, (3) file the tender offer with SEC, and (4) provide the target firm's management, as well as other competing bidders (if any), with full details of the offer. By bidding on less than five percent, none of these rules apply.
Related information about mini-tender offer:
- Mini-tender offer - Wikipedia, the free encyclopedia
A mini-tender offer is an offer to acquire a company's shares directly from current investors in an amount less than 5% of issued stock.
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Mini-Tender Offer. Also found in: Wikipedia, 0.02 sec. Mini-Tender Offer. A tender offer for less than 5% of shares outstanding. A tender offer is an offer to buy a ...
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Definition of mini-tender offer: Direct solicitation to the current stockholders for less than five percent of a firm's stock. The bidder's objective is to escape the ...
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Thus, while a mini-tender offer may include a premium over market price for a selling shareholder, the lack of all of the protections provided for recipients of a full ...
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Jan 31, 2008 ... If you've been asked to tender your securities, find out first whether the offer is a mini-tender offer. And remember that mini-tender offers ...
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