Changes to the UK takeovers regime on 20 May

On 20 May important changes will be made to the UK takeovers regime. Principally these result from the implementation of the EU Takeovers Directive, but the Takeover Panel is also taking the opportunity to introduce various other unrelated changes on which it has been consulting.

In summary:

• For takeovers that fall within the scope of the Directive, the Panel will have greater powers to enforce Code Rules and it will be a criminal offence for an offer document or defence circular not to contain all the information required by certain Code Rules. A different statutory squeeze-out procedure will also apply to such bids.

• There will be tighter restrictions on a target taking action to frustrate a bid.