Reply to "questions"10 Nov 2005 12:59
DGM. Firstly there are only two types of takeovers.
1) Recommended. Bidder/Target Boards agreed offer terms
2) Hostile. Bidder/Target cannot agree terms but Bidder makes a bid anyway.
Once an approach has been made to the Directors/Board of the Target Co. They have to, with the legal team, send an Offer/Circular document iout to the shareholders/members outlining the offer terms and normally give an opinion on those terms.
There is a strict timetable to be adhered to as laid down in "The City Code"
Shareholding milestones;
3% to 14.99% sunstantial holding declarations,
15% to 29.99% Substantial acquisition rules kick in,
A Bidder can pounce at anytime here on in.
30% mandatory Offer kicks in whether the Bidder/Target likes it or not Bidder has to offer to buy up the remaing Target shares.
These follow a strict FSMA timetable (Oulined in offer circular)
£30% to 50% not quite there but the Bid proceeds
51% to 90% cracked it (All conditions in offer document satisfied)
Remaining 10% can compulsory bought up pursuant to companies Act 1985, they would be worthless anyway no one would buy them off tou except the Bidding company. But you surrender them on terms that were offered to everyone else.
This is an extremely brief overview. Please do not request further detail, we could be here all year. Suffice to say, if you have or can get your hands on an Offer document, it is all in there.