The Takeover Panel has published a new Panel Bulletin 5 on possible offer announcements.
Panel Bulletins contain guidance to remind people how specific provisions of the Takeover Code operate but do not entail any changes to the interpretation or application of the Code.
In the Bulletin the Panel reminds financial advisers in particular that:
- Immediate announcement - Once the requirement for a possible offer announcement under Rule 2.2 has been triggered, the Executive expects the announcement to be made within a matter of minutes.
- Preparation of draft announcements - Draft announcement(s) should be prepared and approved by the bidder/target at an early stage.
- Procedure for release of information - The procedure for releasing the announcement should be agreed in advance, and the financial adviser should ensure that it or its client has arrangements in place for releasing the announcement, including access to a Regulatory Information Service.
- Contents of the announcement - The possible offer announcement should include prescribed information including the identity of the possible offeror(s) and the minimum level or particular form of consideration that must be offered. However if for any reason the draft announcement does not contain all the relevant information, it should be released anyway and a separate announcement with the missing information made as soon as possible.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.