A tender offer generally offers a price that is higher the current market price for a conditional number of shares.
Tender offers are a popular method for one firm to be acquired by another. An unconditional offer to purchase a substantial number of shares at a price that is often higher than the stock's existing price is known as a tender offer.
If the market price of the outstanding stock is just $15 a share, a tender offer could be made to buy them for $18 each.
In order to give shareholders a stronger incentive to sell their shares, the tender offer is often established at a price per share that is higher than the company's existing stock price.
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