Friday, 6 July 2012

UK: Takeover Code amendments - three consultation papers published

The Takeover Panel Code Committee yesterday published three consultation papers outlining proposed changes to the City Code on Takeovers and Mergers. The first paper concerns, amongst other things, profits forecasts, quantified financial benefits statements and material changes in information: see here (pdf). The second paper, available here (pdf), is concerned with issues relating to pension scheme trustees. In this paper the Code Committee proposes that the provisions of the Code which apply to employee representatives should apply also to the trustees of the offeree company’s pension scheme(s). As such offerors will, amongst other things, be required to state in the offer document what their intentions are with regard to the offeree company’s pension scheme(s). The third paper, available here (pdf), is concerned with the companies to which the Code applies and in this regard the Committee is proposing removing the residency test.

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