Takeover Panel seeks increase in derivative disclosure

Author: | Published: 1 Feb 2005

The UK's Takeover Panel is proposing to make buyers of equity derivatives disclose their holdings as a way to stop investors exerting hidden influence on mergers and acquisitions.

The Panel in early January issued a consultation paper outlining why it wants to make market participants disclose the use of contracts for difference (CFDs), which are derivatives instruments that allow investors effectively to control shares without owning them.

"This is a very sensible issue for the Panel to take forward and a really good idea," said James Palmer, corporate partner at Herbert Smith. "Equity derivatives should not be used to avoid disclosure requirements."...