A more thorough explanation:

Definition: Creeping acquisition is the gradual purchase of a corporation's stock at varying prices on the open market. It is a takeover method that does not involve a formal tender offer, although the SEC may classify it as such for regulatory purposes. It is also known as creeping tender offer.

Example: Company A wants to acquire Company B. Instead of making a formal offer to buy all of Company B's shares at once, Company A starts buying small amounts of Company B's shares on the stock market over a period of time. This way, Company A can slowly gain control of Company B without alerting other shareholders or triggering regulatory requirements.

Explanation: The example illustrates how a company can use creeping acquisition to gain control of another company without making a formal offer. By buying small amounts of shares over time, the acquiring company can avoid triggering regulatory requirements and potentially paying a premium for the shares. This method allows the acquiring company to slowly gain control of the target company without alerting other shareholders or causing a sudden increase in the share price.