In another lesson, we learned what a tender offer is and how it’s used to complete M&A transactions. Now, let’s explore the rules and regulations governing tender offers.

I. The Williams Act

The Williams Act, an amendment to the Exchange Act, is a federal law regulating tender offers. Enacted primarily to protect the target company’s shareholders, the act contains several disclosure requirements, substantive rules, and procedural rules intended to combat the potentially unfair high-pressure...