Why do companies who want to acquire a target company, go for tender offer & want to pay a premium to the existing shareholder, when they can just buy the required quantity without premium FROM the open market?

Question

title

In: Economics

Answer 1

Not a large enough % of the company is up for sale in the open market.

And, once that news gets out that a company is actively trying to buy up shares, it automatically causes the price of those shares to jump as sellers jack up their prices knowing that there is this demand out there