Equality of information to shareholders
Pages 3

Information about companies involved in an offer must be made equally available to all shareholders as nearly as possible at the same time and in the same manner.184

The announcement of a takeover bid can have a dramatic effect on the share price of the companies concerned. It may increase or decrease, depending on how the market views the matter, which can encourage insider dealing and create a false impression of the position of the company in question. Conducting or defending such a bid can also affect companies commercially, not least because this ties down resources and can hinder management. It is not therefore surprising that the Code contains provisions which, in very general terms, prevent offers which have been withdrawn or have lapsed from being remade within a period of 12 months from the date of the withdrawal or the offer lapsing.185 There are also restrictions on the offeror, or any person who acted or is acting in concert with the offeror, acquiring shares in the target company.186 These restrictions may not apply if what is proposed receives the consent of the Panel.187