<p>An "<a href="https://www.investopedia.com/terms/o/openoffer.asp" rel="nofollow noreferrer">Open Offer</a>" is not necessarily the same as a "corporate takeover."  </p>

<p>An "open offer" (as defined by the link above) is </p>

<blockquote>
  <p>the opportunity to purchase stock at a price that is lower than the current market price </p>
</blockquote>

<p>An "open offer" is primarily used to raise funds for the company.  </p>

<p>However, it is also important to note that, in an "open offer," </p>

<blockquote>
  <p>a company allows existing shareholders to purchase additional shares directly from the company in proportion to what they currently own. This is to prevent dilution to existing shareholders </p>
</blockquote>

<p>Since the existing shareholders own the same proportion of stocks both before and and after the "open offer," the leadership of the company does not necessarily change.  </p>

CC BY-SA 4.0
2019-03-27T16:14:29.607Z
Thanks, so the open offer mentioned in this  "https://economictimes.indiatimes.com/markets/stocks/news/lt-open-offer-for-mindtree-to-kick-off-on-may-14-co-says-offer-price-at-rs-980-value-accretive/articleshow/68577381.cms" article is not the same?
Megh
CC BY-SA 4.0
2019-03-27T20:52:36.423Z
@Megh The link you posted uses the term "open offer," but it doesn't seem that a definition is provided. The only definition that I have seen is at the link that I posted. Though, it could be that the phrase "open offer" has more than one meaning in the business world.
Mathematician
CC BY-SA 4.0
2019-03-26T14:05:42.603Z
2019-03-26T14:05:42.603Z
Mathematician
<p>What is open offer in simple terms? What is its meaning in cases of taking over the major stakes in other company?</p>

CC BY-SA 4.0
2019-03-26T15:35:45.847Z
I'm voting to close this question as off-topic because it does not appear to be about economics.
Herr K.
<stock-market><investment><multinational-companies>
Open offer made by companies to take over
Megh
# Open offer made by companies to take over

(Asked by: username_0 on 2019-03-25)

What is open offer in simple terms? What is its meaning in cases of taking over the major stakes in other company?

**Tags:** stock-market, investment, multinational-companies

> **Comments:**
> **username_1**: I'm voting to close this question as off-topic because it does not appear to be about economics.  

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## 1 answers

### Answer by username_2 on 2019-03-26. Score: 1 | Accepted answer

An "[Open Offer](https://www.investopedia.com/terms/o/openoffer.asp)" is not necessarily the same as a "corporate takeover."

An "open offer" (as defined by the link above) is

> the opportunity to purchase stock at a price that is lower than the current market price

An "open offer" is primarily used to raise funds for the company.

However, it is also important to note that, in an "open offer,"

> a company allows existing shareholders to purchase additional shares directly from the company in proportion to what they currently own. This is to prevent dilution to existing shareholders

Since the existing shareholders own the same proportion of stocks both before and and after the "open offer," the leadership of the company does not necessarily change.

> **Comments:**
> **username_0**: Thanks, so the open offer mentioned in this  "https://economictimes.indiatimes.com/markets/stocks/news/lt-open-offer-for-mindtree-to-kick-off-on-may-14-co-says-offer-price-at-rs-980-value-accretive/articleshow/68577381.cms" article is not the same?  
> **username_2**: @username_0 The link you posted uses the term "open offer," but it doesn't seem that a definition is provided. The only definition that I have seen is at the link that I posted. Though, it could be that the phrase "open offer" has more than one meaning in the business world.  

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