What is the meaning of Tender offer?

When a corporation offers to buy outstanding shares of another company, called the target company, at a price higher than the market price, it is called a' Tender offer'. The tender is usually part of a bid to take over the target company. If a corporation accumulates 5% or more of another company, it has to report its holdings to the Securities and Exchange Commission (SEC), the target company, and the exchange or market on which the target company's shares are traded.