• Update on the UK Takeover Panel’s review of the Takeover Code
  • October 29, 2010 | Author: Laurence B. Levy
  • Law Firm: Shearman & Sterling LLP - New York Office
  • On 21 October 2010, the UK Panel on Takeovers and Mergers (the Panel) released a response to the feedback it has received to its wide-ranging June 2010 review of a number of basic principles of UK takeover regulation. In its response the Panel has switched its focus from the impact of short-term investors on the outcome of hostile bids to a concern that the present rules in its City Code on Takeovers and Mergers (the Code) unduly favour hostile bidders over their targets and that the position of targets needs strengthening. The changes to the Code that the Panel is now proposing to address this are likely to prove just as controversial as the Panel’s possible changes to address its concern about the impact of short-term investors were.