The Takeover Panel: Guidance re. proposed Code Amendments
July 4, 2011
The Takeover Panel has published guidance in relation to its proposed amendments to the Takeover Code.
The guidance, in particular the guidance as to the potential transitional arrangements, is intended to explain the likely sequence of events if the proposed amendments to the Code are adopted.
Of particular importance is the "put up or shut up provision" which protects target companies. The guidance states that there will be an automatic presumption of a 28 day limit between an approach and a formal offer being made. This approach contrasts to the current situation where the Takeover Panel determines deadlines for formal bids on an ad hoc basis.
This change was prompted by criticisms of the 2010 £11.6bn acquisition of Cadbury by Kraft where Cadbury was exposed to numerous approaches.