The City Code, The Takeover Panel And Their Application In Jersey

Introduction

Currently, the City Code on Takeovers and Mergers (the "Code"), which is issued by the Panel on Takeovers and Mergers of the UK (the "Panel"), applies to offers made for public companies incorporated in Jersey if either their shares are listed on a regulated market in the UK or on any stock exchange in the Channel Islands or the Isle of Man or if they are considered by the Panel to have their place of central management and control in the UK, the Channel Islands or the Isle of Man (and application to private companies is also possible in limited circumstances).

Since the creation of the Panel in 1968, it has acted in a non-statutory capacity and has developed the Code to reflect the collective opinion of those professionally involved in the field of takeovers and mergers as to appropriate business standards and how to achieve fairness for shareholders and an orderly framework for takeovers and mergers.