Listen to a Business English Dialogue About Tender offer
Elizabeth: Hi Orla, do you know what a tender offer is in business?
Orla: Yes, I do. It’s when a company makes a public offer to purchase shares of its own stock or the stock of another company at a specified price.
Elizabeth: That’s correct. Tender offers are often used as a way for companies to acquire a significant stake in another company or to buy back their own shares from existing shareholders.
Orla: Have you ever been involved in a tender offer situation?
Elizabeth: Yes, I have. In my previous job, our company made a tender offer to acquire a smaller competitor to expand our market share.
Orla: That sounds like an exciting opportunity. How did the tender offer process work?
Elizabeth: Well, first, our company announced the tender offer publicly, stating the price per share and the total number of shares we intended to purchase.
Orla: And then what happened next?
Elizabeth: Shareholders of the target company had the option to tender their shares if they wanted to sell at the offered price. After a specified period, the company would then determine if enough shares were tendered to proceed with the acquisition.
Orla: Did the tender offer ultimately succeed?
Elizabeth: Yes, it did. Enough shareholders tendered their shares, and the acquisition went through successfully, allowing our company to achieve its strategic objectives.
Orla: That’s great to hear. Tender offers seem like a complex but important aspect of corporate finance.
Elizabeth: Absolutely. They play a significant role in corporate transactions and can have a significant impact on the involved companies and shareholders.
Orla: Thank you for explaining, Elizabeth.
Elizabeth: You’re welcome, Orla. Understanding tender offers is essential for anyone involved in the business world.