What is the offer?

offers are attempts to ensure unpaid shares of shares associated with a given company other than buying shares on an open market. The offer usually includes the upcoming current shareholder and an offer for all or part of the shares held. To make the offer attractive, the purchase price is usually above the current market value.

The use of the offer menu is a common approach when an individual or entity starts an offer of receipt. Bids can be carried out for many reasons. There may be interest in obtaining a profitable company and its introduction to conglomeration within the growth strategy. At the same time, it may be a way of getting control of the company's assets with regard to the systematic dismantling of the operation and selling various assets individually for profit.

In order to make the offer attractive to current shareholders, the price of the PER unit of shares is usually above the current market value that would be realized in the usual trading. Is not uncommon that the offer inThe selection procedure will also consider fluctuations in the price that is reflected in the short term. When taking into account both of these factors, it is possible to gain attention to a sufficient number of shareholders to obtain control interest in a relatively short period of time.

The use of the offer tends to start discreet questions until the investor has accumulated enough shares to publish his intentions. This happens normally through a government agency that has jurisdiction over transactions. Through the government agency, the investor must issue offers to report total shares in the target company to the agency, own company and stock exchange, where the company's shares are usually traded. Different governments have set a specific percentage of outstanding shares as a scale where this action must take place.

However, the offer of the offer will not stop after the right reports through the government agency. BidY often move forward at a more aggressive pace, as the company is likely to start taking steps to prevent other shares. At this point, the offer of the selection procedure may be increased, which makes it difficult for existing shareholders to resist.