TAKEOVER BIDS

Press, Volume XCIX, Issue 29278, 9 August 1960, Page 17

TAKEOVER BIDS

Code Of Conduct

Proposed (N.Z. Press Association—Copyright)

LONDON, August 7. A code of conduct for takeover bidders with the full weight of the law behind it was proposed by the British Association of Certified and Corporate Accountants in a memorandum published today. It would ban making takeover bids without telling the directors of the company concerned. It would force a takeover bidder to disclose his name and not hide behind a third party "front man” and make it compulsory for a bidder promising cash to declare when and by whom it will be paid. He would also have to produce a letter from a body approved by the Board of Trade affirming that the total amount of cash needed Will be forthcoming. The council of the association says it feels that when an offer is sent direct to shareholders, the. terms of the bid should be delivered to the directors of the company not later than the day on which it is sent to members. 21-Day Option The bid should remain open for at least 21 days after such comments have been sent to members of the company. When the bid is made through the directors of the company bid for, the directors should make their comments in the same way and the 21-day stipulation should also apply. The bidder should disclose how many of the company’s shares he already holds or controls and say how many more he proposes to acquire. Directors should ensure that all relevant information in their possession is made available to shareholders or state what additional information they think is needed.

Full details should be disclosed of the name and address of the bidder, the ultimate purchaser .if this is someone else, and, if the purchaser is a subsidiary, the name of its holding company.