Hostile Tender Offer Law and Legal Definition

Hostile tender offer is an offer to purchase shares of a corporation made directly to the shareholders of a target company, bypassing the target company's management. A hostile tender offer occurs when the target company's board of directors has recommended that shareholders not sell, and it will usually try to make a better offer than the hostile tender offer to buy out shareholders and avoid being taken over. A hostile tender offer is also called unfriendly tender offer.