Takeover Panel Publishes Practice Statement On Directors’ Irrevocable Commitments And Letters Of Intent

The Takeover Panel Executive published a Practice Statement on 17 January 2014 to clarify the way in which it interprets and applies Rule 21.2 of the Takeover Code in relation to irrevocable commitments and letters of intent given by offeree company shareholders who are also offeree directors. The Executive clarified that such person is permitted to enter into an irrevocable commitment or letter of intent to accept an offer (or to vote in favour of a scheme of arrangement) with respect to the shares in the offeree company that he holds or controls. Such person is not permitted to enter into any other type of offer-related arrangement with the offeror or the offeror's concert parties, and these include commitments: