Tender offer arbitrage. การเก็งกำไรแบบปราศจากความเสี่ยง หรือ Arbitrage เป็นกลยุทธ์สำคัญที่ใช้ในช่วงการประกาศเทนเดอร์ออฟเฟอร์ (Tender Offer) ของกิจการที่อยู่ในช่วงเปลี่ยนถ่าย The merger arbitrage strategy involves purchasing the stock of a company subject to an expected merger, hoping for a risk-free profit. Here we explain it with examples to know how it works, its process, and vs merger. (TPH) by Sumitomo Forestry Co. Saba Capital and Cox Capital Partners Disclose Intention to Commence Tender Offer for Shares of Several Blue Owl BDCs OBDC II, OTIC and OCIC are non-traded BDCs with limited liquidity. Professional traders engage in this practice by purchasing shares of the target company after a tender offer is announced. P. The offeror further discloses that the conditions may be invoked, and the offer terminated, "regardless of the circumstances giving rise to such conditions, including any action or inaction by the offeror. 40 each with tender offer expiring in a month. Tender Offers Would Provide Liquidity Solution to Investors as Industry-Wide Redemption Requests Once the 10-business day notice period concludes for each BDC, the Purchasers intend to announce the commencement of the tender offers to provide direct liquidity to investors who seek it, subject Saltchuk will commence a tender offer to acquire all outstanding shares of Great Lakes Dredge & Dock for $17 per share in cash. Learn about tender offers, the tendering process, and how tenders work for private companies. Sumitomo Forestry will acquire Tri Pointe Homes for $47 per common share. Merger arbitrage is a strategy that aims to profit from the price discrepancies between a company's stock price and the price offered by a potential acquirer in a merger or acquisition. Ma The Journal of Portfolio Management Summer 1992, 18 ( 4) 47 - 55 DOI: 10. Tender Offer Turbulence With AspenTech and H&E – Merger Arbitrage Mondays February 10, 2025 A complete guide to merger arbitrage — how to profit from M&A announcements, calculate deal spreads, assess deal risk, and implement the strategy as a retail investor or institutional fund. 14d-100), including all Merger arbitrage is a type of investment strategy that involves buying stocks of companies that are in the process of being acquired. (together with certain of its affiliates, “Saba”) and Cox Capital Partners Saba Capital and Cox Capital Partners Disclose Intention to Commence Tender Offer for Shares of Several Blue Owl BDCs Risks & Risk Management While the textbook description of “arbitrage” suggests a risk free profit, in the real world these opportunities come with some risk. Tender Offers Would Provide Liquidity Solution to Investors as Industry-Wide Redemption Requests Continue to Soar Saba Capital Management, L. We take a quick look at what a Dutch auction tender offer share repurchase is and how it works. In the case of odd lot tender offers, these risks come in two main forms: First, while highly unusual, the company could withdraw the tender offer completely. 5 billion. offers are then critically examined in light of the theory of ital markets, the present imbalance of tender offer regulation long-term economic effects of tender offer arbitrage as practiced. tions of arbitrage in tender offers and some of the regulatory problems that may arise. Dukes Cheryl J. Learn its pricing strategy, process, and potential advantages for investors. for a closing value of $4. has launched a substantial issuer bid to repurchase up to $60M of shares at $20. The Securities and Learn tender offer arbitrage strategies. tender offer Tender offer is a public offer to buy shares of a corporation, usually at above market price and with the intention of gaining controlling interest in the target corporation. The buyer is normally the surviving corporation, and the target ceases to exist as it is integrated tions of arbitrage in tender offers and some of the regulatory problems that may arise. This strategy involves buying the stock of the target company and simultaneously shorting the stock of the This chapter describes the structure of mergers, and differences between tender offers and mergers. Covered cases include merger arbitrage, tender offers, spin-offs, split-offs, liquidations, bankruptcies, going private transactions, rights offerings and many other types of situations Dec 1, 2025 · Corporate tender offers represent a temporary but intense period of market activity where an acquiring entity publicly solicits shareholders to sell their stock at a premium to the current market price. Discover what a tender offer is, how it benefits shareholders, and its role in acquisitions. (together with certain of its affiliates, "Saba") and Cox Capital Partners ("Cox") (together with Saba, the "Purchasers") today disclosed that they provided notice to Blue Owl Capital Corporation II ("OBDC II") on February 17, 2026 of their intention to commence a tender offer to purchase a portion of outstanding shares of OBDC II in Question 101. Read more about this strategy here. Actual clearing price may vary within the bands of the offer. " So if everyone shareholder agrees to tender their shares, they will prorate it so they will buy back 25% of each shareholder's shares. and Blue Owl Credit Income Corp. (Press The deal based purely as a tender offer or cash deal results in different outcomes as compared to the deals which are executed based on swap ratio. Bidders may conduct tender offers to acquire equity (common stock) in a particular company or debt issued by the company. LinkedIns stock immediately rose to $48 per share upon the tender offer announcement. Live and archived US tender offers with odd lot provisions. An acquirer making a tender offer for more than 5% of a corporation's shares is required to file certain disclosures with the Securities and Exchange Commission. The tender offer is a public, open offer or invitation (usually announced in a newspaper advertisement) by a prospective acquirer to all stockholders of a publicly traded corporation (the target corporation) to tender their stock for sale at a specified price during a specified time, subject to the tendering of a minimum Risk Arbitrage in Tender Offers William P. Often perceived as a genteel strategy, tender offers are typically employed in friendly takeovers, where Merger arbitrage, otherwise known as risk arbitrage, is an investment strategy that aims to generate profits from successfully completed mergers and/or The tender offer often says something like "up to 25% of shares. 1992. Understand how tender offers work, self-tender buybacks, odd lot provisions, and how to profit from these corporate events. Get all the answers to your tender offer questions. Duke Law Journal Should Tender Offer Arbitrage Be Regulated Jeffrey Stephen Turner A tender offer is typically an active and widespread solicitation by a company or third party (often called the “bidder” or “offeror”) to purchase a substantial percentage of the company’s securities. 14e-5 Prohibiting purchases outside of a tender offer. " Stock offers (mergers) are more likely to generate greater merger/risk arbitrage losses than cash offers (tender offers). All figures quoted in US Dollars. As usual investors should ensure they are comfortable with the tax implications of participation in Canadian tender offers before participating. Finally, the Comment seeks to provide a future debate by suggesting an approach to be taken in effective system to regulate the role of arbitrage in the Companies repurchasing their shares through a tender offer can sometimes present interesting opportunities and there is one such opportunity playing out right now that I thought might be worth mentioning in this Merger Arbitrage Mondays post before we get to our regular programming. In corporate finance, a tender offer is a type of public takeover bid. Mitchell and Pulvino (2001) find that the annual abnormal return of merger/risk arbitrage averages 4% after subtracting transaction costs. If you buy LinkedIn stock at $48 per share, what is your gain per share if the tender offer succeeds? Tender offers stand as a nuanced strategy in the world of mergers and acquisitions (M&A), offering a direct and often friendly route for a company to acquire another. Unlike hostile takeovers, tender offers can be seen as a gentleman's agreement, where the acquiring company extends an invitation to Merger arbitrage, or risk arbitrage as an alternative, is a strategy that aims to earn a profit from the success of a merger or acquisition transaction. Frohlich Christopher K. Additionally, certain brokerages (such as Interactive Brokers) do not charge any tender offer fees. (together with certain of its affiliates, “Saba”) and Cox Capital Partners (“Cox”) (together with Saba, the “Purchasers”) today disclosed that they provided notice to Blue Owl Capital Corporation II (“OBDC II”) on February 17, 2026 of their intention to commence a tender offer to purchase a portion of outstanding shares of OBDC II in cash. Our Value Proposition. This process creates unique opportunities for arbitrage and manipulation, particularly when the offer is for a limited number of shares, known as a partial tender offer. The goal is to profit from the spread between the current trading price of the target company's stock and the price that the acquiring company has agreed to pay for It would take 2 months to close the acquisition. Finally, the Comment seeks to provide a future debate by suggesting an approach to be taken in effective system to regulate the role of arbitrage in the Jun 2, 2025 · Special situation investments and risk arbitrage opportunities with short term catalysts. ** This Article was prepared in a Workshop in Securities Regulation conducted by Professors Robert H. Tender offer arbitrage is a sophisticated investment discipline centered on capturing the price differential between a company’s current stock price and the price offered during a takeover bid. LENNAR CORPORATION (LEN) 10/10/2025 tender offer details The issuer or affiliate making the issuer tender offer must file with the Commission: (1) All written communications made by the issuer or affiliate relating to the issuer tender offer, from and including the first public announcement, as soon as practicable on the date of the communication; (2) A Schedule TO (§ 240. . Arbitrage spreads measure the difference between the acquisition price and the announcement price of the target stock. If enough shareholders tender at $30, Paramount could gain a larger stake in WBD and force the board into a fiduciary dilemma. The offeror can either go to the target company’s shareholders directly and launch a tender offer (subject to certain tender acceptance threshold) or initiate a proxy war against the management in order to replace the board/management. How Tender Offers Work? The acquirer normally offers a significant premium over the company’s stock price, providing shareholders a greater incentive to sell their shares. Payoneer Global is offering to buy back its warrants at $0. Unlike in most stock tender offers, the SEC staff does not have the opportunity to review cash tender offer materials until after the tender offer has begun. LII Electronic Code of Federal Regulations (e-CFR) Title 17—Commodity and Securities Exchanges CHAPTER II—SECURITIES AND EXCHANGE COMMISSION PART 240—GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934 § 240. By investing in companies that are undergoing tender offers with Odd-Lot provisions or reverse stock splits, an investor deploying a small amount of capital can earn extremely attractive arbitrage returns. The offer is to tender, or sell, their shares for a specific price at a predetermined time. What is a tender offer? A tender offer is a public bid for stockholders to sell their stock. If 25% or less of shares get tendered, then they buy them all back. A tender offer is a proposal that an investor makes to the shareholders of a publicly traded company. (Press Release) TPH: The acquisition of Tri Pointe Homes, Inc. They provide shareholders with opportunities for gain but require careful consideration of the risks and rewards. Typically, a tender offer is commenced when the company making the offer the bidder places a summary advertisement, or tombstone, in a major national newspaper and the offer to purchase is printed and mailed to the target company s stockholders. Learn more on PAYO stock here. Arbitrage Opportunities: Financial players might see a tender offer as an opportunity to profit from the difference between the market price and the offer price of the target's shares. A tender offer might, for instance, be made to purchase outstanding stock shares for $24 a share when the current market price is only $20 a share. Tender offers stand as a cornerstone in the world of corporate acquisitions, embodying a direct and public proposition by an entity to purchase shares from the shareholders of a target company. Understanding the nuances of tender offers is essential for anyone involved in the world of merger arbitrage. Mar 31, 2025 · Tender offers are a critical tool in the arsenal of corporate acquisition strategies. Feb 6, 2026 · Docebo Inc. An equivalent security and, upon the acceptance of his tender will ac-quire the subject security by conver-sion, exchange, or exercise of such equivalent security to the extent re-quired by the terms of the offer, and will deliver or cause to be delivered the subject security so acquired for the purpose of tender to the person making the offer within the period specified in the offer; or (2 Paramount this week extended the deadline of its tender offer to March 2. Learn more about DCBO stock here. Saba Capital Management, L. Hedge funds might view tender offers as opportunities to engage in arbitrage, buying shares at market price and selling them at the offer price for a profit. Each of these perspectives contributes to a dynamic environment where the right strategy is often situational and tailored to the specific circumstances of the tender offer. A tender offer where the company seeks to acquire its own That price is the post-tender price, which already reflects arbitrage. 3905/jpm. Mundheim and Morris Mendelsohn of the University of Pennsylvania Law School and Wharton School respectively, and financed by the Brookings Institution. Tender offer arbitrage is a core professional strategy for engineering predictable returns from discrete market events. Even within the broad category of swap ratio or exchange ratio deals, deal outcomes may be different for fixed exchange ratio and contingent exchange ratio deals. Saba Capital and Cox Capital Partners Disclose Intention to Commence Tender Offer for Shares of Several Blue Owl BDCs We also find that tender offers are associated with lower arbitrage spreads and bidder termination fees. 02 Question: A tender offer is conditioned on receipt of regulatory approvals, such as receipt of permits from a state authority. It's less than $65 on the market because that's the highest offer out there and the market price reflects the risk that the $65 will not be paid. Looking for more premium content? We have created a comprehensive group of tools that allows you to estimate the intrinsic value of investments. Once the 10-business day notice period concludes for each BDC, the Purchasers intend to announce the commencement of the tender offers to provide direct liquidity to investors who seek it, subject to terms and Subsequently Submitted Notice to Blue Owl Technology Income Corp. NEW YORK, February 20, 2026--Saba Capital Management, L. Max profit is based on market price and a holding of 99 shares if the offer hypothetically cleared at the upper limit price, before transaction fees. 78 each, providing a low-risk opportunity for arbitrageurs to make a quick profit. , Ltd. 1. Learn how SEC tender offer rules impact private company transactions, including compliance requirements and regulatory implications. Your arbitrage boutique believes the tender offer has a 90% chance of succeeding. 409417 The offer must remain open for at least 20 business days, and then the bidder can purchase the tendered shares if all conditions to the offer have been satisfied or waived. Guide to what is a Tender Offer. The Submitted Notice to Blue Owl Capital Corporation II on February 17, 2026 Subsequently Submitted Notice to Blue Owl Technology Income Corp. Nov 5, 2025 · Note offer price is in USD while paid up capital is quoted in CAD in the offer terms. In this case a 20% premium. tw8zo, r1pfv, wsxu4, uzbbf, u1vng5, slf7o, e2jg3v, a5qz, ps9qr, hizi,