two-tier tender offer

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In a takeover bid, a tender offer to purchase in which shareholders are offered a high initial offer for sufficient shares to give the bidder a controlling interest in the company, followed by an offer to acquire the remaining shares at a lower price. Bidders use this technique in order to provide an incentive to shareholders to accept the initial offer quickly. Such offers are usually for a combination of cash and shares in the bidder's own company. They are illegal in some countries, notably the UK. See also bootstrap.

Subjects: Financial Institutions and Services.

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