Author: Joanna Healey

New Takeover Panel guidance on stub equity

The Takeover Panel has published a new practice statement to provide guidance on its approach when a bidder is including an unlisted share alternative in a cash offer. An unlisted share alternative typically comprises securities in the bidder (or a bidder group company) and provides target shareholders with the opportunity to remain indirectly invested in the target if the offer is successful. The guidance clarifies what is mainly existing practice, covering areas such as equivalent treatment for target shareholders, disclosure details, and restrictions on availability.