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ARTICLE · 01 NOVEMBER 2016

Proposed changes to the Takeovers Panel guidance on frustrating action

HopgoodGanim
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This updated guidance could provide welcome clarity for target companies in carrying on business during a bid period,.

AustraliaCorporate/Commercial Law
Michele Muscillo
Michele Muscillo
Luke Dawson
Luke Dawson
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The Australian Takeovers Panel (Panel) has recently proposed changes to its guidance on "frustrating action".1 If implemented, the updated guidance will provide welcome clarity for target companies in carrying on their business during a bid period, as well as somewhat realigning the "balance of power" that exists between a bidder and a target in a takeover.

In this alert, Partner Michele Muscillo and Senior Associate Luke Dawson highlight and comment on the proposed changes to Guidance Note 12 – Frustrating action (GN12).

Background and overview of policy

A "frustrating action" is an action taken or proposed by a takeover target, by reason of which:

  • a bid may be withdrawn or lapse; or

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