Takeover Panel aims to tighten deal rules

THE TAKEOVER Panel wants to introduce a series of changes to its rules to help protect those involved with businesses that are being targeted by potential purchasers.

Bidders will need to state their ultimate plans for the merged entity and the repercussions of the deal for the various stakeholders at a much earlier date, in conjunction with their intention to make a firm bid, according to the proposals from the Panel’s Code Committee.

Buyers will also need to spell out what will happen to the target’s headquarters and research & development (R&D) operations and whether its entire workforce will be impacted, with potential changes to the mix of skilled and unskilled workers and full-time versus part-time staff.

Such plans – whether they remain post-offer intentions or legally binding undertakings – will need to be published in a separate report as part of Britain’s effort to make bidders accountable for what they promise.

The proposals, which have been put out for consultation until October 31, have already been welcomed by Business Secretary Greg Clark stressing Britain’s “reputation for being a dependable and confident place in which to do business”.

Additionally the new rules say that bidders must wait at least 14 days before announcing their plans to make a firm offer.