In this lesson, we’ll learn about the federal regulations for a public solicitation to buy securities from their holders, otherwise known as a tender offer.

I. Tender Offers

Corporate takeovers can help efficiently allocate capital. If a company’s assets could be more valuable if owned and controlled by another firm, it might expect to become the target of a takeover offer. If the board of directors of a target company refuses to negotiate or approve a transaction, an acquirer may go...