The main functions of the Panel on Takeovers and Mergers, commonly known as the “Panel”, or “Takeover Panel” are to issue and administer the City Code on Takeovers and Mergers known as the “Code”. The Panel is an independent body, established in 1968 to supervise and regulate takeovers and other matters to which the Code applies. Its central objective is to ensure fair treatment for all shareholders in takeover bids. From the Takeover Panel’s own website, its scope and functions are described as
The Panel regulates takeover bids and other merger transactions (however effected) for companies which have their registered offices in the United Kingdom, the Channel Islands or the Isle of Man if any of their securities are admitted to trading on a regulated market or multilateral trading facility in the United Kingdom or on any stock exchange in the Channel Islands or the Isle of Man. Its remit also extends to other public companies and certain private companies which are resident in the United Kingdom, the Channel Islands or the Isle of Man.
The panel posts a number of forms and checklists on its website that must be completed and submitted during the course of a takeover. Traders can also use the forms as a guide when asking themselves key questions about merger arbitrage deals which they are considering for investment.
The Takeover Panel in Action
The Takeover Panel differs from the Competition and Markets Authority (CMA) in that the focus is on the shareholders. The Takeover code clearly states
The Takeover Code is designed to ensure that shareholders are treated fairly, are not denied an opportunity to decide on the merits of a takeover and are afforded equivalent treatment by an offeror. It provides an orderly framework within which takeovers are conducted.
A full length version of the Takeover Code is available for download as a PDF document. However, as the two bodies are aligned in their objectives, many stories which show up on our CMA News Feed will often refer to actions made by the Takeover Panel.
In addition to this, a listing of the full Disclosure Table with details of all stocks currently involvled in a UK takeover is also available on this website.
