Definition
Dealer manager instructions are the operational and procedural guidance distributed by the dealer manager (the broker-dealer engaged by the bidder to coordinate the tender process) to brokers and other intermediaries about how to handle tenders into the offer.
What they cover
- DTC delivery instructions for tendered shares
- Letter-of-transmittal handling
- Guaranteed delivery procedures
- Withdrawal mechanics
- Compensation arrangements (solicitation fees) where applicable
Why it matters
Brokers process thousands of corporate actions; clear dealer-manager instructions prevent operational errors that could disenfranchise holders or delay settlement.