On 1 June 2010, the Code Committee of the Takeover Panel published a public consultation paper which set out suggestions for possible amendments to the Takeover Code.
The consultation gave rise to an unprecedented number of responses, with 97 formal responses being received from a broad range of respondents representing industry, investors, academics, practitioners, trades unions and individuals. It also occasioned a great deal of discussion among market participants and other interested constituencies.
The Code Committee has issued a statement in response to the Consultation Paper and sets out the Code Committee’s conclusions in relation to the principal issues consulted upon. The Code Committee has concluded that there is a case for proposing amendments to the Code and the Code Committee will publish one or more public consultation papers in due course setting out the proposed amendments in full in accordance with its usual procedures for amending the Code.
The Code Committee has concluded that hostile offerors have, in recent times, been able to obtain a tactical advantage over the offeree company to the detriment of the offeree company and its shareholders.
In view of this conclusion, the Code Committee intends to bring forward proposals to amend the Code with a view to reducing this tactical advantage and redressing the balance in favour of the offeree company. In addition, the Code Committee has concluded that a number of changes should be proposed to the Code to improve the offer process and to take more account of the position of persons who are affected by takeovers in addition to offeree company shareholders.
For further details see here.
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