ordinating the process to ensure deadlines are met, and ensuring compliance

with applicable laws. 

 
In the private sector, requests for tenders are referred to as requests for
proposals (RFP)—which allows potential bidders to respond to the defined
needs of the issuer.

Special Considerations
A tender offer is a public solicitation to all shareholders requesting that they
tender their stock for sale at a specific price during a certain time. To entice
shareholders to release a specific number of shares, the offer typically
exceeds the current market value of the shares. In the U.S., tender offers are
highly scrutinized and subject to extensive regulation.3

Since the deal targets shareholders directly, it effectively removes upper

management from the process, unless those members of management are
also substantial shareholders. If the company looking to take over already has
a notable share of the target company, referred to as a foothold block, a
minority of the remaining shareholders may be enough to allow the company
making the offer to become the majority shareholder.

However, if the requested shares are not released by the deadline, the deal is
often considered void, effectively allowing shareholders to block the deal.

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