Equity derivative disclosure targeted by the Takeovers Panel

Download: 2012 PUB BC Equity derivative disclosure targeted by the Takeovers Panel - 30 August.pdf

The Takeovers Panel is seeking input on whether holders of long equity derivative positions in listed companies should be required to disclose those interests.

Investment banks writing equity derivatives, their clients, and market participants generally, should take note. Submissions on the Panel's proposals are due by 5 October 2012.

The Panel is concerned that, under current law, a person may, in effect, accumulate undisclosed equity positions in listed companies through the use of equity derivatives, particularly in the period leading up to a takeover offer.

What are equity derivatives?