Can shrink float, return cash, and catalyze rerates—if priced below intrinsic value.
Published: 2026-02-14
Companies (or bidders) use tender offers to repurchase shares or take control. For net-nets, cash-funded tenders below estimated intrinsic value can be high-quality catalysts.
“An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return.” — Benjamin Graham
Points to watch:
- Proration risk if demand exceeds the amount sought.
- Conditional tenders tied to minimum acceptance thresholds.
- Post-tender float shrinkage that may tighten liquidity.