How deal dynamics will change

Author: | Published: 3 Nov 2010

The Takeover Panel’s recent announcement on its proposals to change the Code contains significant proposed changes to the UK takeover regime. Some commentators have called these one of the biggest shake-ups in UK deal-making in 20 years. Others have suggested they will make little difference. It is likely that the proposals will significantly change the dynamics for many UK takeovers.

At the heart of the Panel’s consultation was the question of whether hostile or unsolicitated takeover bids should be made harder in the UK market.

The announcement of the Panel’s proposals was initially greeted with a sigh of relief by market participants who strongly supported the Panel’s decision not to proceed with the three most significant and radical ideas in its discussion paper: raising the acceptance condition above the 50% plus one current level; disenfranchising or suspending voting rights on shares acquired during an offer period;...