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In the business practice, particularly about companys right, often a company want to took over other company by bought

its stock in huge number, that intended to develop its influence. If that held without advised to public earlier, so that will became a loss to minority shareholder. So be it come up Tender Offer mechanism which made by Bapepam LK (now financial authority/OJK).

In doing its tender, emiten or public company have a duty to follow rules about clarity, fittingness, and report which issued from Bapepam-LK, thats suits with article no. 83 Law number8/1995 about Capital Market. Within explanation of that article meaning of Initial Public Offering is offering through Mass Media to getting equity characteristic stock with bought or spited with other stock. Mass Media means newspaper, magazine, film, television, radio, or other electronic media or letter, brochure, and other printed media which shared to more than 100 parties.

Tender offer in definition means : a offering publicized to bought share with highest price (according to market) which stated directly to target company, with several certainty, like offering period, funding requirement, total amount of stock which desired by bidder

Tender Offer involved offering to buying stocks from other shareholder can effected reducing amount of shareholders number significantly and there is another possibilities its company not longer holding a public company status. Because of that minority shareholder need to acquiring a kind of protection.