June 13 - Philly.com - Corporate acquisitions through tender offers are making a comeback, a trend that could reduce shareholder protests over merger prices.
Most mergers and acquisitions need to win support from a majority of the target company's shareholders via a costly and time-consuming proxy-voting process. In tender offers, the acquirer aims to take over a company by buying up its shares, usually at a premium to entice shareholders to sell, or tender, their shares to the acquirer.
The use of tender offers in friendly mergers had been all but dead in recent years because of confusion over the rules. But such deals - which can take half the time of a merger approved through a vote of shareholders - were revived last year after the Securities and Exchange Commission clarified the process. Read More.
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