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Counter Offer on a Takeover

Counter Offer on a Takeover

A PLC has received approval from their Board of Directors to accept an offer for part of their business. It hasn't yet gone to Shareholder approval.

If the Board receive a further (better) offer - are they required to also accept it and put it to the Shareholders?

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19th Aug 2010 09:51

Depends

I assume you are saying that the Board of Directors of a plc has received an offer for a part of the business and are recommending that offer to the shareholders?

If indeed the competing offer is better (it is down to the Board and their advisers to determine that) then yes I would expect the competing offer also to be recommended to shareholders.

Have a read of the City Code if you have a close interest http://www.thetakeoverpanel.org.uk/wp-content/uploads/2008/11/code.pdf

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19th Aug 2010 21:34

Counter Offer on a Takeover

Yes, your understanding is correct. The 2nd/counter offer is to be made by a client of ours, and a Director of this Company is a former Director of the Selling Company and there is some bad blood so he feels that the Board of Directors may try to ignore his offer even though financially it is better than the one they already have

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