Takeovers - Proposed amendments to the Takeover Code

Takeovers - Proposed amendments to the Takeover Code

The Code Committee of the Takeover Panel has published a consultation paper seeking comments on its review of certain aspects of the regulation of takeover bids. The proposed amendments include various measures designed to increase the protection for offeree companies, particularly in the event of approaches from “hostile” offeror companies. The changes include:

  •     increasing the protection for offeree companies against protracted “virtual bid” periods by requiring potential offerors to clarify their position within a short period of time;
  •     strengthening the position of offeree companies by prohibiting deal protection measures and inducement fees other than in certain limited cases;
  •     increasing transparency and improving the quality of disclosure;
  •     providing greater recognition of the interests of offeree company employees.

The consultation closes on 27 May 2011.

For further information and a copy of the consultation paper click here.

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