Originally Posted by
robbo24
Indeed.
Although it's an interesting process being followed here.
Section 41 of the Takeovers Code prescribes a process that much be followed. A notice of intention to make an offer must be accompanied by documentation set out in Schedule 1 of the Code. This must be disclosed. A formal full or partial offer follows later.
What we have here looks like something else. The Takeovers Code cannot be contracted out of. The Takeovers Act also includes an offence of the usual misleading/market manipulation but extends it to "any transaction or event regulated by the takeovers code or incidental or preliminary to a transaction or event that is or is likely to be regulated by the takeovers code..." But how is anyone meant to know the non-binding expression of interest (seemingly preliminary to a notice of intention to make an offer) is not misleading if it is confidential?
My question is this - is there other examples of a completely qualifified, confidential (keeping in mind the Code cannot be contracted out of) conditional (etc etc) expression of interest for a takeover? Is this really normal and on what basis? If not, why are they exempt from following the normal process just because they say it's non-binding?
I would expect a justifiable price rise on the basis of an s 41 notice with all the trimmings, but not this :D