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I have this from a paper of Tender offers in stock repurchases. Pe(No - Ne) = PoNo - PtNewhere Pe = post offer expiration stock priceNo = pre offer number of shares outstandingNe = number of shares purchasedPt = tender offer price.Po = pre announcement stock pricethis has been simplied toPe = Po - (Pt - Po) ( a/1-a) where a = Ne/NoIt's not just the simplification and rearrangement but the meaning of this equation.This says that the post tender offer price = the pre announcement price minus the Tender offer premimumtime some factor.Any help in understanding this greatly appreciated.

Lets say (No - Ne) represents the number of post offer shares outstanding andPe = (PoNo - PtNe)/(No - Ne) Then the post offer price, Pe, is the value of the firm less repurchase cost, (PoNo - PtNe), normalised. The scaling factor is simply the percentage of shares purchased given the post offer number of issue.