Takeovers Panel seeks to clarify truth in takeovers

When can a bidder who makes a no increase statement come back with another bid or propose a scheme with increased consideration? The Takeovers Panel released a consultation paper on 14 March 2018 on its Guidance Note 1: Unacceptable Circumstances (GN1), which proposes that unacceptable circumstances are likely to arise if, after making a no increase statement, a bidder makes another bid within four months of the initial bid closing and offers increased consideration.

Submissions on the draft revised GN1 are due by 20 April 2018.

Background

A market participant that attempts to depart from, or act inconsistently with, a last and final statement, runs the risk of ASIC:

• taking regulatory action against the market participant for misleading or deceptive conduct, or