The Takeovers Panel (Panel) has sounded a timely warning in relation to the use of shareholder communications campaigns in the recent Lake Technology Limited (Lake Technology) decision. While in that particular matter the Panel declined to commence proceedings, the reasons for its decision provide useful guidance to parties seeking to conduct retail shareholder canvassing by way of telephone campaigns.
The background
The Lake Technology decision concerned a bid by Dolby Australia Pty Limited (Dolby) for Lake Technology. The application to the Panel was made by Mr Robert Catto. Mr Catto alleged unacceptable circumstances in connection with Dolby's bid on the basis of communications made with Lake Technology shareholders by a shareholder relations firm hired by Dolby to assist with its bid. Mr Catto submitted that Lake Technology shareholders were misled in relation to various matters concerning calls made by representatives of the communications firm.
