Explanation:
The exception is A.
The statement in A is not the best characterization of a tender offer. A tender offer is a voluntary repurchase offer; the fact pattern described in A is not the standard rule for what makes a tender offer valid or invalid.
So A is the incorrect statement.
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Q-196.7. Each of the following is true about a tender offer by the issuer of a corporate bond EXCEPT:
A
The tender offer provision must be specified in the indenture, otherwise it is considered “hostile” and subject to legal challenge
B
Firms tend to employ tender offers to eliminate restrictive covenants or to refund debt
C
A tender offer is a means to extinguishing debt prior to its stated maturity
D
If the issuer (firm) perceives that participation is too low, the issuer can increase the tender offer price and extend the tender offer window
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