The art of being defensive

Article Abstract:

UK company directors often use a variety of tactics to sabotage or prevent a hostile takeover, usually in defense of their own position within the company which they feel will be jeopardized if another management team is used. These actions usually go against the City Code regarding takeovers and mergers, which specify directors should inform shareholders and take legal advise as to the best course of action for the firm, rather than for themselves. Shareholders are notified through a defence document, which can be drawn up deliberately to deter a merger or takeover.

Research, Corporation law

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Swedes get tough on big stakeholders

Article Abstract:

Companies listed on the Stockholm Stock Exchange will be required to become more transparent about large stake purchases from Jul 1, 1999. New legislation will mean that a bid must be extended to all shareholders if the acquired stake brings control over more than 40% of voting rights. The principal owner will also have the right to demand that the hostile bidder puts forward an offer for all shares in the company. Article also details recent acquisition and merger deals in Sweden, including the sale of crispbread manufacturer Wasa to Italian pasta concern Barilla.

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New competition laws could produce watershed for utilities M&A

Article Abstract:

UK water regulator Ian Byatt announced at the end of Jan 2000 that he was no longer against mergers in the water industry. The government's willingness to allow mergers between water companies will be tested by Thames Water's planned takeover of Anglian Water. However, many observers feel that a bid may not be made for some time. Byatt has strengthened his approach with the launch on Mar 1, 2000, of the Competition Act, under which water companies will have easier access to parts of the UK in which they are not currently present.

Regulation and Administration of Communications, Electric, Gas, and Other Utilities, Water Utilities Regulation, Water utilities, Utility regulations

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