Holdings Notification "rules"3 Sep 2005 10:02
HHO. Just to clarify the Holdings announcement legislation.
1stly holdings up to 2.99% do not have to be delared.
2ndly Holdings 3%-14.99% have to be notified to the Company pursuant to the Companies Act 1985 Part V1.
3rdly Holdings 15% to 29.99% are still reportable BUT the City Code places restrictions on how fast the holdings can be acquired. This is why once an RNS has been reported for holdings anywhere between 15%-29.99% there is 7 days before more shares can be acquired by the stake builder.
3rdl any holdings 30% the "rules" state that a "MANDATORY" offer has to be made for the rest of the shares, ie, the remaining 70%.
It is almost unique for would be bidders to raise their holding to 30% during the initial buying up period. The main reason being they are obliged to make a mandatory Bid, they have lost all the good playing hands, they are totally at the behest of the "city code". You or I or any Holdings may not want to sell out, or there may not be enough available stock to buy. What does the prospective bidder do? not a lot, he is in a position to have to make a bid for all the remaining shares, a lot will be held by the Board, family members, TAML ( who own 15.8%) you or I who own our bit, may not like the would be buy out offer. More often than not a holding of 29.99% is the most any single holder will want at such an early stage until the would be bidder is absuolutely "CONFIDENT" of gaining at least 90% underta