Definition
The offer price is the consideration per share that the bidder will pay for each share validly tendered and accepted. It is fixed at launch and stated in the offer-to-purchase.
Forms
- Cash — most common in modern deals; clean and easy to value
- Securities — exchange offers pay in bidder stock at a stated exchange ratio
- Mixed — cash plus securities
Why it matters
The offer price is the single most-watched number in any tender offer. It anchors the tender offer premium (offer price vs. pre-announcement market price) and drives the arbitrage spread once the deal is announced.
Amendments
A bidder can raise the price during the offer period; doing so triggers Rule 14e-1’s 10-business-day extension and the all-holders / best-price rule (the new price applies to all tendering shareholders, including those who already tendered).