New UK Rules For Public Takeovers Come Into Force 19 September 2011 – Practical Implications For Bidders

On 21 July 2011, the Takeover Panel published the final version of its revised rules governing takeovers of UK public companies. The media frenzy surrounding Kraft's takeover of Cadbury was a catalyst for reviewing the regulation of takeover bids in the UK. Some of the more controversial suggestions, such as raising the acceptance level required for success and disenfranchising short term shareholders, have not made the final cut. Nevertheless, many of the changes coming into force on 19 September 2011 remain controversial with both domestic and international bidders.

The new rules will have implications not only in the likelihood of a bid being made but in terms of the chances of a takeover succeeding and the cost of a successful bid. The combination of a short period after the first public announcement of a possible bid within which bidders must either make a firm offer or withdraw and the prohibition of most deal protection measures may well also lead to a decrease