12 month hostile takeover rule means a max offer of 60p11 Sep 2020 10:05
Looking the the AA charts for the previous 12 months, the 12 month high is around 70p, but this drops to 60p at around the same time as the current takeover talks deadline, on 29th September. The only reason there hasn't been a hostile takeover so far is because of the Takeover Code rules https://www.thetakeoverpanel.org.uk/the-code/download-code "When a person or group acquires interests in shares carrying 30% or more of the voting rights of a company, they must make a cash offer to all other shareholders at the highest price paid in the 12 months before the offer was announced", i.e. any group could instigate a take over attempt of the AA by acquiring 30% of the shares, but then they would have to currently pay 70p per share. A non-hostile takeover (currently being explored) allows for a lower price. By the end of September though, the 'hostile' takeover prices drops to 60p - with no need for the AA board's approval needed, only shareholders. Any non-hostile price will be less than the hostile 60p possible at the end of this month. I'd be amazed as such if any agreed takeover price is over 50p.