If an acquiring firm's merger proposal was rejected by a target firm's management and board of directors, the acquiring firm could utilize a tender offer to gain control of the target firm.

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A tender offer is a public offer made by the acquiring firm to the shareholders of the target firm to purchase their shares at a premium price. If a sufficient number of shares are tendered, the acquiring firm can gain control of the target firm without the approval of its management and board of directors. This strategy is often used by acquiring firms when their merger proposals have been rejected by the target firm's management and board.

If an Acquiring Firm's Merger Proposal Was Rejected by a Target