Takeover Code Consultation - Distribution Of Information During An Offer

The Code Committee of the Takeover Panel has published a consultation paper containing some proposed changes to the City Code on Takeovers and Mergers (the "Code") relating to the manner in which information and opinions are communicated and distributed by, or on behalf of, a bidder or target company during the course of an offer. These changes are mainly being introduced in order to clarify how the Code is currently interpreted in practice and are unlikely to result in a significant change in how offers are conducted.

The proposed changes are designed to reinforce the existing key requirements under the Takeover Code for the shareholders of the target company to be treated equally and for them to be given sufficient time and information to enable them to reach a properly informed decision on a bid. They also reflect the way in which communications are now made through social media, the internet or other electronic means.