Definition
The bidder is the party making a tender offer. In the U.S. regulatory frame, “bidder” is the term used in Schedule TO and Reg 14D; “offeror” is the equivalent term in some non-U.S. regimes and in academic usage.
Bidder types
- Strategic acquirer — operating company in or adjacent to the target’s industry
- Financial sponsor — private equity firm, often via a newly-formed acquisition vehicle
- Activist — a shareholder pursuing board representation or strategic change (rarely launches a full tender; more commonly pursues a partial tender as part of a broader campaign)
- The issuer itself — in which case the offer is an issuer tender offer
Disclosure obligations
Bidders file Schedule TO at commencement and amend for material changes. The bidder must also disclose its identity, financing, and plans for the target.