Creeping Tender Offer

A creeping tender offer is a strategy used by a company or investor to gradually acquire a controlling interest in a target company by purchasing shares on the open market. Instead of making a formal tender offer for a large block of shares at once, the buyer accumulates shares over time, often to avoid attracting attention or triggering regulatory scrutiny. This approach allows the buyer to gain control of the company without offering a premium to existing shareholders.

Example

An investor starts buying small amounts of a company’s shares over several months, gradually increasing ownership until reaching a controlling interest, without making a formal tender offer.