Elizabeth Fournier Staff writer
The UK Takeover Panel's consultation paper is a "very brave"
and "sensible" proposal that doesn't shy away from
controversial debates. But implementing many of the changes
could prove difficult.
The consultation paper was published on June 1. Among the
points discussed are increasing the majority required to launch
a takeover bid, disenfranchising short-term shareholders'
voting rights, and reducing the 28-day period allowed for an
offering document to be prepared.
"The Panel has sensibly taken a step back and gone for a
preliminary paper to address some of the most fundamental and
controversial questions," says Nigel Read, a partner at Hogan
Lovells in London. "But a number of the changes have knock-on
consequences outside of the Code's reach."
As several of the proposals would require fundamental
changes to the laws that govern UK companies, some are
sceptical that they can be successful.
"It's a broad and potentially...