Definition of Williams Act:
Legislation that regulates tender offers.
The Williams Act is a federal law enacted in 1968 that defines the rules of acquisitions and tender offers. It came in response to a wave of hostile takeover attempts from corporate raiders, making cash tender offers for stocks they owned. Cash tender offers threatened to destroy value by forcing shareholders to tender shares on a shortened timetable.
To protect investors, Senator Harrison A. Williams of New Jersey proposed new legislation that required mandatory disclosure of information regarding takeover bids. It demands bidders include all details of a tender offer in filings to the Securities and Exchange Commissions (SEC) and the target company. The filing must include the offer terms, cash source and the bidder's plans for the company after the takeover.
Meaning of Williams Act & Williams Act Definition