What is Self Tender?

A company that buys back a certain percentage of its shares through a tender offer, typically at a price that is far beyond the share's current market value, in order to reduce the risk of a successful hostile takeover by becoming its own majority shareholder or by reducing the value of the company by creating debt. However, Self Tender is not intended to stop trade of its stock; so a self tender offer usually excludes a specific number of relatively non-influential shareholders.