Blitzkreig Tender Offer

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Definition: Blitzkreig Tender Offer

A Blitzkreig tender offer is a tender offer which is so prominent that it is not objected to and is accepted readily.

Tender offers are made to acquire a stake in a company by acquiring the stocks. When the stakeholders are not willing to dispose off their stock or think that their valuation is much higher than what is being offered, then they will reject the offer. But in a Blitzkrieg tender offer the offer is so attractive that the stakeholders accept it quiet soon. Hence the whole process of acquiring the stake goes on quite smoothly without much hassle and objections.

For Example: Let’s suppose that a company ‘A’ is being under the purview of another company ‘B‘ for takeover. The stock of the company A is trading at $12 per share. Now the company ‘B’ offers the stakeholders of the company an offer to sell their shares at $29 per share. Seeing that the offer is made so high than the real valuation, the shareholders will accept the offer very quickly and the takeover is completed within a very less time. This offer made by company ‘B’ is known as Blitzkreig tender offer.


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