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SEC Ends Uncertainty Over Best-Price Tender Offers

Law360 (October 19, 2006, 12:00 AM EDT) -- In an effort to diminish confusion over its best-price tender offer rules, the Securities and Exchange Commission has voted unanimously to clarify that the rules only applies to securities transactions.

Tender offers are public offers a person or a company makes to purchase stock from existing shareholders, usually to gain a controlling interest in a corporation. Stockholders are asked to “tender,” or surrender, their holdings for a stated value, which is usually above the current market price.

A 1986 SEC law required that all shareholders be...
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