Hedged tender

Used in reference to a tender offer; an investor selling a portion of their shares short in the event of a tender offer in the event all shares tendered are not accepted. For example, investor Q has 5000 shares of XYZ. An acquiring company makes a tender offer of $100 a share when the shares are currently worth $80. Investor Q short sells 2500 shares after the announcement and the price of the stock has approached $100. Company XYZ only tenders 2500 of her original shares at $100. Investor Q has sold all shares at $100 even as the price of the stock drops on a post-news dip.