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ARTICLE · 04 DECEMBER 2006

Saving Acceptance Facilities For Everyone

The Takeovers Panel has definitively declared that institutional acceptance facilities are an acceptable tool for takeover bids.

AustraliaCorporate/Commercial Law

Key Point

  • The Takeovers Panel has definitively declared that institutional acceptance facilities are an acceptable tool for takeover bids.

The later stages of Toll's bid for Patrick saw a Takeovers Panel challenge to Toll's institutional acceptance facility.

If successful, this could have hindered not only Toll's bid, but many other large M&A transactions in Australia.

That's because of the way that institutional investors and hedge funds increasingly determine M&A outcomes.

Shareholders are not all the same

Institutions differ from retail investors because they are often subject to mandate restrictions (such as a requirement to maintain a percentage of invested funds in listed securities).

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