A Dutch auction tender is a type of tender offer used mainly for a share buyback or a bond tender. Instead of offering one fixed price, the company announces a price range and the amount it wishes to buy. Each holder who wants to sell states how many securities it tenders and the lowest price it will accept within the range. When the offer closes, the company finds the lowest price at which it can buy the target amount. Everyone who tendered at or below that price is paid the same clearing price; higher tenders are rejected. The method borrows its name from the Dutch auction.
If more is tendered at or below the clearing price than the company wants, acceptances are scaled back pro rata, often with priority for small holdings. For custodians the event is a voluntary corporate action with several options, one for each price step, and is handled through tender offer processing.