TenderOffer.co
Glossary

Rule 13e-4

SEC rule governing issuer tender offers — the company-funded buyback regime.

Also called: 13e-4, 13e4, Rule 13e-4 issuer tender

Definition

Rule 13e-4 under the Exchange Act governs issuer tender offers — tender offers in which the issuer of the securities is the buyer. It implements §13(e) of the Williams Act.

What it requires

  • Filing of Schedule TO-I at commencement
  • 20-business-day minimum offer window (same as Reg 14E)
  • Withdrawal rights throughout the offer period
  • Pro-rata acceptance if oversubscribed (with odd-lot exception)
  • All-holders / best-price equal-treatment requirement
  • Prohibition on the issuer purchasing target shares outside the tender offer for 10 business days after expiration

Why it matters

Issuer tender offers face stricter disclosure than third-party offers because the company has informational advantages over its own shareholders. Rule 13e-4 levels that field.

Going-private intersection

When an issuer tender offer is a step in a going-private transaction, the additional disclosure of Rule 13e-3 also applies.

Related terms