Dealings in derivatives and options – changes to the Takeover Code

On 7 November Rule 8 of the Takeover Code was amended to require certain dealings in options and derivatives related to target shares to be disclosed to the market in the same way as dealings in actual shares.

Under the revised Rule 8.3 of the Code, a person who is directly or indirectly "interested" in 1% or more of any class of relevant securities of the target company or, if appropriate, the bidder (or who will be interested in 1% or more as a result of a transaction) must disclose publicly all "dealings" in such relevant securities of that company carried out during an offer period. A new definition of "interests in securities" provides that a person who has long economic exposure to changes in the price of securities (ie.