RE: A quick aside to this currently freewheeling discussion8 Jul 2025 15:04
strategic reasons for withholding:
negotiating leverage:
by keeping the annual accounts private, a company can control the flow of information to the potential acquirer, potentially leading to a more favorable offer. the acquirer might be willing to pay a higher price if they lack a complete financial picture and are eager to secure the deal.
avoiding competitive disadvantage:
revealing detailed financial information, especially in the annual accounts, could give competitors valuable insights into the company's operations, strategies, and market position. this could weaken the company's competitive standing, especially if the potential acquirer is a competitor.
managing market perception:
holding back the accounts can create uncertainty and intrigue, which might drive up the perceived value of the company in the eyes of the market and the potential acquirer. it allows the company to shape the narrative surrounding its financial health and future prospects.
legal and regulatory considerations:
disclosure requirements:
while companies may withhold accounts temporarily during an offer, they are still subject to legal and regulatory requirements regarding financial reporting and disclosure. the specific rules vary by jurisdiction, but there are usually timelines and penalties for non-compliance.
"true and fair view":
annual accounts must present a "true and fair view" of the company's financial position. if the company is withholding information, it needs to ensure that any published information still adheres to this standard.
potential penalties:
failure to comply with disclosure requirements can result in fines, legal action, and reputational damage.
in essence, withholding annual accounts during a takeover offer is a strategic decision that can have both advantages and disadvantages. it requires careful consideration of the potential risks and benefits, as well as a thorough understanding of the relevant legal and regulatory framework.
now that’s from ai but to me it doesn’t fit the narrative i’d like re trying together more value from bidders if they were minded to accept 35p.
maybe the accounts are an absolute ****show after all.
whatever the case may be they should still be issued to the market and shareholders for clarity and transparency/honesty.
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