Takeover code: lawyers’ reaction

Author: | Published: 22 Oct 2010

The proposed changes to the Takeover Panel’s code go further than many corporate partners expected.

“It’s definitely more radical than we anticipated,” said James Palmer from Herbert Smith. “I think the market was expecting a tougher statement on put-up-or-shut-up rules, not something as direct as the four weeks’ rule. We weren’t expecting a prohibition on deal protection fees.”

Palmer added: “If the panel wanted to be seen as tougher on hostile bids, they have done just that.”

The clamp-down on virtual bids was one of the key talking points among partners given their prominence in recent years. “It’s probably been a bit too easy for a...