What is Self Tender Defence?

Self Tender Defence is a strategy against a hostile takeover where the target company undertakes a tender offer for its own shares. A Self Tender Defence can be employed if the target company's administration does not agree to the potential takeover because it believes the hostile bid had underestimated the market value of its shares. The purpose of the Self Tender Defence is to make the cost of acquisition prohibitively expensive to the bidder, or reducing its value by creating debt to finance the tender, until the bidder is forced to relinquish its pursuit of the target company.