Creeping Tender Offer
A strategy where an acquirer gradually buys shares of a target company in the open market to gain a controlling interest without launching a formal tender offer.
Implications
A method of acquiring control of a company by gradually purchasing its shares on the open market rather than making a formal tender offer, often used to avoid triggering regulatory scrutiny or shareholder resistance.
Example
Example: An investor uses a creeping tender offer to acquire a controlling stake in a public company by steadily buying shares over time, eventually gaining significant influence without launching a full takeover bid.
Related Terms
Different from a traditional tender offer, which is a public bid to purchase shares, a creeping tender offer is a more gradual and often less conspicuous approach to gaining control.
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