Mergers and takeovers in the US and UK: law and practice
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| Beschreibung: | LV, 832 S. |
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| adam_text | CONTENTS—SUMMARY
Tables of Cases xxv
Tables of Primary and Secondary Legislation xli
A. TAKEOVERS IN THE US—LAW AND PRACTICE
1. Merger and Tender Offer Structures in the US 3
2. The US Federal Regulatory Structure 87
3. US State Anti takeover Statutes 169
4. Fiduciary Duties in US Corporate Takeovers:
The Business Judgment Rule, the Unocal Test, and the
Revlon Auction Duty 211
5. Defensive Measures Against Corporate Takeovers 311
6. Proxy Contests and Written Consent Solicitations
in the US 427
B. TAKEOVERS IN THE UK—LAW AND PRACTICE
7. The Framework of UK Takeover Regulation 495
8. Stakebuilding Below the 30% Control Threshold;
the SARs and Partial Offers; Statutory Schemes of
Arrangement and Compulsory Acquisitions of Minority Shares 555
9. The Regulation of Takeovers under the City Code 593
10. Defensive Measures in UK Takeovers 693
C. CROSS BORDER TRANSACTIONS
11. Cross Border Mergers and Takeovers in the UK and the US 743
Appendix 771
Index 775
TABLE OF CONTENTS
Tables of Cases xxv
Tables of Primary and Secondary Legislation xli
A. TAKEOVERS IN THE US—LAW AND PRACTICE
1. Merger and Tender Offer Structures in the US
A. Overview of Recommended/Negotiated Acquisitions in the US:
Long form Mergers and Recommended Tender Offers
Introduction—an overview of recommended/negotiated
acquisitions compared with hostile takeovers 1.01
Negotiated/recommended acquisitions: the long form
stock for stock merger 1.04
Negotiated/recommended acquisitions: the cash tender offer
followed by a back end freezeout merger 1.13
Negotiated/recommended acquisitions: share exchange offers—
a viable alternative 1.22
B. Mechanics of Long form Mergers
Introduction 1.27
Merger structures 1.30
Merger mechanics under the Delaware General Corporation
Law—Sections 251 through 261 1.40
C. Principal Clauses in Agreements for Negotiated/
Recommended (i) Long form Mergers and (ii) Tender Offers
Introduction 1.62
Confidentiality agreements 1.63
Merger Agreement in multi step recommended cash tender offer
followed by a back end freezeout merger 1.65
Merger Agreements in long form stock for stock mergers 1.82
Financial advisor s fairness opinions 1.117
D. Hostile Takeover Techniques: Tender Offers and Shareholder
Coercion
Introduction 1.118
Historical development of hostile coercive tender offers 1.122
Coercion in tender offers; US and UK regulatory responses 1.126
Creeping acquisitions in hostile tender offers: acquiring a
beachhead stake 1.136
E. Eliminating Minority Shareholders Through Back end
Freezeout Mergers; Appraisal Rights and Other Remedies
Introduction 1.139
Delaware s short form freezeout merger statute: Section 253 1.142
Proper business purpose doctrine eliminated as a requirement
for a freezeout merger 1.148
Dissenting from the freezeout merger: minority shareholder
remedies and appraisal rights 1.149
Entitlement to the statutory appraisal remedy 1.158
Determining the fair value of the dissenting shares in an
appraisal procedure: from the Delaware block method
to the liberalized test of entire fairness 1.170
The test of entire fairness under Weinberger v. UOP, Inc. 1.194
. The US Federal Regulatory Structure
A. Introduction: An Overview of the Williams Act 2.01
B. Acquisitions of 5% or More of the Target s Securities:
Schedules 13D and 13G Filings
The reporting requirement of Section 13(d) 2.11
Reporting on the short form Schedule 13G 2.12
The 10 day window 2.14
Beneficial ownership 2.15
Joint and group filings 2.20
Meaning of group for purposes of Section 13(d) and (g) 2.21
Content of Schedule 13D 2.24
Schedule 13G 2.31
Content of Schedule 13G 2.36
Amendments to Schedules 13D and 13G 2.47
C. Tender Offer Mechanics: Sections I4(d) and l4(e) of the Securities
Exchange Act 1934, and Regulations 14D and 14E
Introduction 2.50
SEC sM AReleaseNo.33 7760; 34 42055;IC 24107;
File No. S7 28 98—effective January 24,2000 2.51
Section I4(e) and Regulation 14E: rules which govern all tender
offers and exchange offers 2.52
Section 14(d) and Regulation 14D 2.56
Commencement of a tender offer, filing requirements, and
dissemination of tender offer materials 2.63
Communications before and after the formal commencement
of an offer 2.66
Dissemination by long form publication, or a summary
advertisement or the use of stockholder lists and security
position listings 2.68
Specific rules for share exchange offers— early commencement
and balancing the regulation of cash tender offers and share
exchange offers 2.70
Early commencement of exchange offers—Rule I4d 4(b) 2.75
D. Tender Offer Materials
The Schedule TO and the Offer to Purchase 2.79
Contents of the Offer to Purchase 2.83
E. The Timetable for a Tender Offer
Twenty US business day minimum offer period 2.103
Subsequent offering period following the initial twenty business
day offerperiod 2.104
Prompt payment 2.105
Shareholder withdrawal rights 2.106
Statutory pro rata requirements 2.107
The all holders and best price rules 2.108
Restrictions on purchases of Target shares after commencement
of the tender offer 2.111
F. Target Corporation Board s Response to the Tender Offer
Rule 14e 2 and Rule 14d 9 2.112
The Schedule 14D 9 2.118
Amendments to Schedule 14D 9 2.128
G. Tender Offers and Street Sweeps
Absence of a definition of tender offer 2.129
Street sweeps 2.131
The eight factor test—the test in Wellman v. Dickinson 2.135
H. Proposals for Reform 2.141
I. The General Antifraud Provision of Section I4(e) of the
Williams Act: An Overview of the Erstwhile Competition
Between Federal Law and State Law Regulation of Tender
Offers 2.144
J. Going Private Transactions: Rule 13e 3 and Schedule
13E 3
Introduction 2.155
Special committee of independent outside directors 2.159
Applicable standard of judicial review in going private
transactions 2.162
Application of Rule 13e 3 2.167
Contents of the Schedule 13E 3 2.170
K. An Overview of the Hart Scott Rodino Anti Trust
Improvements Act
Premerger notification requirements 2.190
Threshold tests for application of the HSR 2.191
Valuation of securities and assets for purposes of the HSR 2.194
Statutory exemptions from the filing obligation 2.196
Acquisition of the securities or assets of foreign companies 2.200
HSR filing procedures and waiting periods—initial waiting
period of 15 calendar days for cash tender offers, and 30
calendar days for other transactions 2.203
3. US State Anti takeover Statutes
A. Introduction: First Generation Anti takeover Statutes 3.01
B. The US Supreme Court s Judgment in
Edgar v. MITE Corp. 3.08
C. The New Era of Second Generation Takeover Statutes and
the US Supreme Court s Judgment in CTS Corp.
v. Dynamics Corp. of America 3.12
D. Second Generation Anti takeover Statutes 3.23
Control share acquisition statutes 3.24
Supermajority and fair price statutes 3.29
Control share cash out statutes 3.23
Disgorgement and anti greenmail statutes 3.34
Constituency and corporate interest group statutes 3.37
Disclosure statutes 3.42
E. Third Generation Anti takeover Statutes: Business
Combination Statutes 3.44
The New York Business Combination Statute 3.49
Delaware Business Combination Statute 3.54
4. Fiduciary Duties in US Corporate Takeovers: The Business
Judgment Rule, the UnocalTest, and the Revlon Auction Duty
A. Introduction: Standards of Judicial Review 4.01
The procedural posture of takeover litigation under Delaware
law 4.03
The crucial importance of determining the correct standard of
judicial review: the traditional business judgment rule; entire
fairness, the Unocal standard; and the Blasius standard 4.04
B. The Separation of Ownership and Control and General
Fiduciary Principles: US and UK Principles 4.10
C. The Business Judgment Rule in US Takeovers
The nature of the business judgment rule 4.14
Rationale of the business j udgment rule 4.17
The traditional allocation of burdens under the business judgment
rule 4.21
The business judgment doctrine: less protection for defensive
measures? 4.23
Elements of the business judgment rule: a framework for discussing
the duty of loyalty and the duty of care 4.26
Aspects of the duty of loyalty in corporate takeovers 4.28
Aspects of the duty of care in corporate takeovers 4.39
D. The Evolution and Structure of the UnocalTtst
Objections to applying the traditional business judgment rule in
takeover transactions 4.55
The dilemma facing the Cheffprogeny and the answer provided by
Unocal 4.59
The structure of the Unocaltest 4.64
Burden shifting under Unocal—shifting the initial burden to the
defendant directors 4.69
The first stage of Unocal s inquiry: the meaning of a threat for
purposes of Unocal 4.72
The second stage of Unocal s inquiry: the reasonableness of a
defensive tactic; a range of reasonableness under Unitrin 4.75
E. The Application of the Unocal Test in the Delaware Courts:
Anderson, Clayton, and Interco to Unitrin
Introduction 4.79
Threats of structural coercion 4.80
Threats of substantive coercion: Anderson, Clayton 4.81
Threats of substantive coercion: Interco 4.86
The Interco progeny and increasing formalism: Grand Metropolitan
v. Pillsburyand PolaroidII 4.93
A return to die flexible Unocaltest—the decision in Paramount
Communications 4.98
A summary and conclusion on the Interco progeny and Paramount
Communications—implications for the just say no defence 4.104
An expanded Unocaltest— draconian defensive tactics and a
range of reasonableness : Unitrin, Inc. v. American General
Corp. 4.111
F. When Does the Unocal Analysis Apply? Standard Business
Decisions v. Defensive Measures; Mergers v. Defensive
Measures; Enhanced Protection for Pre Planned Anticipatory
Defensive Measures; Shareholder Ratification
Standard business decisions v. defensive measures 4.123
Mergers v. defensive measures 4.126
Enhanced protection for pre planned anticipatory defensive
tactics 4.128
The effect of ratification by the Targets shareholders on the
validity of defensive measures, and the applicable standard of
review 4.132
G. The Target Directors Auction Duty Under Revlon and
Macmillan
Introduction: The Revlon auction duty 4.137
The initial uncertainty following Revlon 4.141
The auction duty as developed in Macmillan and Paramount!QVC
—a range of reasonableness 4.147
When does the duty to conduct an auction arise? The judgments
in Paramount Communcations and Paramount/QVC 4.157
Tilting the level playing field 4.169
The duty to solicit bids 4.192
5. Defensive Measures Against Corporate Takeovers
A. Introduction 5.01
B. Shark Repellents—Structural Defences in the Certificate of
Incorporation or By laws
Introduction: charter and by law amendments 5 04
The defensive effect of shark repellents 5 08
Supermajority voting requirements and fair price provisions 5 10
Classified or staggered board of directors 5 18
Removal of directors only for cause 5 22
Cumulative voting provisions 5.24
Filling vacancies and newly created directorships 5.28
Control over the corporate voting machinery: limitations on
calling special meetings, written consent procedure and advance
notice requirements 5.34
C. Dual Class Capital Structures; Blank Cheque Preferred Stock
Introduction 5.35
Dual class capital structures under Delaware law 5.36
Rule 19c 4 and Stock Exchange policy 5 43
D. Restrictions on the Transfer of Stock; Voting Agreements etc.
Restrictions on stock transfers 5 46
Voting trusts and other voting agreements 5 48
E. Shareholder Rights Plans—Poison Pills
Introduction 5 50
The Delaware Supreme Court s decision in Moran v. Household
International, Inc. 5.57
Mechanics for adopting a poison pill 5.63
Mechanics and features of the flip in/flip over poison pill 5.69
Hypothetical Target company poison pill example 5.76
Redemption of the rights 5.78
Variations of the standard poison pill: chewable pills ; shareholder
referendums; adverse person provisions; permitted offer
exception 5.80
Circumventing the poison pill through a proxy contest: dead hand
or continuing director provisions 5.84
Judicial scrutiny of poison pills 5.93
F. Defensive Restructuring Programmes: Recapitalizations;
Defensive Share Issuances; Repurchases and Greenmail ;
Crown Jewels Asset Sales and Spin offs
Recapitalizations: introduction 5.106
Implementation of a defensive recapitalization 5.110
Recapitalizations: the anti takeover effect of poison debt 5.113
Increased management and ESOP voting power in defensive
recapitalizations 5.115
Judicial scrutiny of defensive recapitalizations 5.116
Defensive spin offs and crown jewel sales 5.146
Judicial scrutiny of crown jewel sales and spin offs 5.150
Defensive share insurances and white squire transactions 5.160
Defensive share repurchase plans: self tender offers, defensive
street sweeps, and standstill agreements 5.184
Defensive self tender offers: compliance with Rule 13e 4 of the
Williams Act 5.190
Judicial scrutiny of defensive self tender offers 5.219
Defensive street sweeps 5.228
Standstill agreements and confidentiality agreements 5.231
G. Greenmail Payments 5.243
The opposition to greenmail 5.244
The arguments in support of greenmail 5.248
Judicial scrutiny of greenmail payments 5.254
H. Lock up Agreements
Share and crown jewel or asset lock up agreements 5.259
I. No shop/No talk Provisions, Fiduciary Out Clauses, and
Break Fees
No shop/no talk provisions; force the vote clauses; fiduciary
duty out clauses 5.266
J. Obstructive Litigation as a Defensive Tactic 5.282
6. Proxy Contests and Written Consent Solicitations in the United
States
A. Introduction: Proxy Contests, Consent Solicitations, and
Corporate Control 6.01
B. Overview of Federal and State Law Governing Proxy
Solicitations Section l4(a) and Regulation 14A of the
Exchange Act
Introduction 6.14
Federal law regulation of proxy solicitations 6.17
Rule I4a 12: Solicitation before furnishing a proxy statement
and the requirement to provide a proxy statement under
Rulel4a 3 6.18
Rules I4a 1 and l4a 2: solicitation 6.22
Rule l4a 3 and Schedule 14A: disclosure requirements 6.27
Rule l4a 4, Rule l4a 5, and Rule l4a 10: proxy card and
presentation of information in proxy statements; short slates
and discretionary voting authority 6.54
Rule l4a 6: filing requirements and confidential treatment of
preliminary proxy materials 6.58
Rule l4a 7: shareholder lists; shareholder inspection rights under
state law 6.62
Shareholder inspection rights under state law 6.64
Rule l4a 8: inclusion of shareholder proposals in the corporation s
proxy statement 6.68
Rule I4a 13: duty of corporation to communicate with beneficial
owners 6.74
Rule l4a 9: general anti fraud provision 6.75
State law duties of disclosure 6.77
C. State Corporation Laws Regulating Proxy Solicitations and
Shareholder Meetings
Introduction 6.85
Quorum requirements, voting and supermajority voting
requirements, notice, and record date provisions 6.87
Annual shareholders meetings and the calling of special shareholders
meetings: postponing shareholders meetings in corporate control
contests 6.92
Advance notice provisions and requirements, and shareholder
nominations and proposals 6.100
D. Corporate Action by Written Consent
Introduction 6.108
The use of the written consent procedure in corporate control
contests 6.112
The fixing of a record date in the written consent procedure 6.120
E. Impermissible Manipulation of the Corporate Machinery:
The Compelling Justification Test in Blasius Industries,
Inc. v. Atlas Corp. 6.123
F. The Interaction Between the Compelling Justification Test
under Blasius, and the Unocal Standard of Review 6.133
B. TAKEOVERS IN THE UK—LAW AND PRACTICE
7. The Framework of UK Takeover Regulation
A. Introduction: The Central Role of the City Code on Takeovers
and Mergers; Interaction with the Companies Act 1985 7.01
B. General Principles of the City Code 7.03
Overview of the General Principles 7.04
C. The City Code: Rules of Best Practice, Jurisdictional Ambit,
and Administration
Rules of best practice 7.12
Jurisdictional ambit of the City Code 7.14
Administration of the City Code 7.18
D. The Self regulatory Nature of the City Code
Background and enforcement 7.25
Judicial review of Panel decisions: the judgments in Datafin and
Guinness 7.32
E. An Overview of UK Acquisition Methods
Offers under the City Code, and schemes of arrangement under
the Companies Act 1985 7.41
Overview of a typical offer made under the City Code 7.51
F. The Financial Services and Markets Act 2000
Background and overview 7.60
The regulation of market abuse 7.63
G. Stock Exchange Regulations Affecting Takeovers in the UK
Listing rules—the Purple Book 7.71
Purple Book, Chapter 10: transactions; and paragraph 10.45:
takeovers and mergers 7.76
H. Financial Assistance and MBOs under Section 151 of the
Companies Act 1985
Introduction 7.87
Section 151—the general prohibition 7.91
The meaning of financial assistance 7.94
Exceptions to Section 151 7.97
Financial assistance in public to private MBO transactions 7.107
Liability for breach of Section 151 7.119
Reform of Sections 151 to 158 of the Companies Act 1985 7.123
I. UK Merger Control under the Enterprise Act 2002
Introduction and overview 7.124
Transactions subject to the Enterprise Act 2002, and applicable
thresholds 7.127
Timetable for reference 7.129
Review and referral procedures of the OFT; confidential guidance 7.130
Review process of the CC and the SLC determination 7.135
J. Overview of Competition Law Governance under the EC
Merger Regulation
Introduction 7.140
Notification on Form CO 7.142
Thresholds for determining a community dimension 7.144
I. Stakebuilding Below the 30% Control Threshold; the
SARs and Partial Offers; Statutory Schemes of Arrangement
and Compulsory Acquisitions of Minority Shares
A. Introduction 8.01
B. Disclosure under Part VI Companies Act 1985: Acquisitions
of 3% or more of the Targets shares
Introduction 8.03
The disclosure of notifiable interests of 3% of a class of shares 8.04
Information to be disclosed under Part VI of the Companies Act
1985 8.06
Interests in shares for purposes of Part VI of the Companies Act 8.07
Notifiable interests held by a group of persons; concert parties 8.10
Penalties and investigations under Part VI of the Companies Act
1985 8.15
Statutory investigations 8.18
C. The Substantial Acquisition Rules ( SARs )— Dawn Raids
Introduction 8.23
The provisions of the SARs 8.28
D. Partial Offers: Restrictions under Rule 36 of the City
Code 8.39
E. Statutory Mechanisms for Effecting Takeovers in the UK
Scheme of arrangement under Sections 425 427 of the
Companies Act 1985 8.47
Reconstruction in the course of voluntary liquidation under
Section 110 of the Insolvency Act 1986 8.61
F. Compulsory Acquisition of Minority Shareholders
Introduction 8.64
Sections 428 430A of the Companies Act 1985: compulsory
acquisition of shares 8.65
Elimination of minority shareholders pursuant to a scheme of
arrangement under Sections 425 427 of the Companies Act
1985 8.82
Elimination of minority shareholders pursuant to a reconstruction
under Section 110 of the Insolvency Act 8.85
Elimination of minority shareholders pursuant to a reduction of
capital under Section 135 of the Companies Act 8.86
Provisions of the articles of association allowing for the compulsory
acquisition of minority shares 8.91
9. The Regulation of Takeovers under the City Code
A. Introduction: An Overview of the City Code 9.01
The definition of control under the City Code 9.04
Definition of acting in concert under the City Code 9.07
Definition of associate under the City Code 9.09
B. Preliminary Steps: The Approach, Announcements of the Offer,
and Independent Financial Advice under Rules 1, 2, and 3
of the City Code
The approach. City Code, Rule 1, and General Principle 3 9.10
Secrecy, timing, and contents of announcement. City Code,
Rule 2 9.13
Independent financial advice. City Code, Rule 3 9.31
C. The Regulatory Timetable, Revisions to the Offer, and
Shareholder Withdrawal Rights: Rules 30 to 34
Posting the offer document and the offeree board circular.
Rule 30 9.38
The regulatory timetable 9.39
Restriction on Target company announcements after the 39th day.
Rule 31.9 9.44
No extension statements. Rule 31.5 9.45
Payment of consideration. Rule 31.8 9.47
Revisions to the offer. Rule 32 9.48
No increase statements. Rule 32.2 9.51
Alternative offers. Rule 33 9.54
Withdrawal rights. Rule 34 9.56
D. Timetable for a Bid 9.57
E. Counteracting Shareholder Coercion in Takeovers:
Acceptance Conditions, Pricing Requirements, and the
Prohibition of Shareholder Discrimination 9.58
The 50% acceptance condition. Rule 10 9.59
Announcement of acceptance levels. Rule 17 9.62
Nature and amount of the offer price. Rule 11 and Rule 6 9.65
Comparable offers and offers for convertible securities. Rules 14
and 15 9.79
The prohibition of special arrangements with favourable
conditions. Rule 16 9.83
Inducement fees ( break fees ). Rule 21.2 9.90
F. Conditions to Which the Offer is Subject. Rules 12 and 13
Competition law reference. Rule 12 9.93
Rule 13 Conditions 9.95
G. Post offer Restrictions on Subsequent Offers and Acquisitions.
Rule 35
Introduction 9.104
Post offer restrictions following a withdrawn or lapsed offer.
Rule 35.1 (a) 9.108
The obligation to confirm whether or not an offer will be made.
Rule35.1(b) 9.109
Regulation of the price of post offer purchases by a majority
shareholder. Rule 35.3 9.112
Panel dispensations from Rules 35.1 and 35.2 9.113
H. Disclosure Requirements and the Regulation of Information
Under the City Code: Standards of Care and Documents in
Takeover Transactions
Introduction 9.116
Directors oversight function 9.118
General obligations as to information, responsibility for information,
and standards of care as to information. Rules 19 and 23 9.120
Equality of information to shareholders and competing bidders.
Rule 20 9.130
The availability of documents and the display of documents.
Rules 19.7 and 19.8, and Rule 26 9.136
I. The Offer Document and Disclosures by the Offeror. Rule 24
Introduction 9.139
Rule 24 of the City Code 9.140
J. The Target Company s Circular: The Response of the Target
Company s Board of Directors. Rule 25
Introduction 9.159
Views of the Target company s board of directors and comments
on the offeror s future intentions regarding the Target company.
Rules 25. land 25.2 9.160
Rule 25.3. Shareholdings and dealings 9.162
Rule 25.4. Directors service contracts 9.163
Rule 25.5. Arrangements in relation to dealings 9.164
Rule 25.6. Material contracts 9.165
K. The Regulation of Profit Statements and Asset Valuations.
Rules 28 and 29
Profit forecasts. Rule 28 9.166
Asset valuations. Rule 29 9.172
L. Advertisements, Telephone Campaigns, Interviews, and
Debates
Advertisements. Rule 19.4 9.176
Telephone campaigns. Rule 19.5 9.179
Interviews and debates. Rule 19.6 9.180
M. Stakebuilding and Disclosure of Share Dealings: City Code,
Rules 4, 5, 7, and 8
Introduction 9.181
Restrictions on dealings. Rule 4 9.182
Timing restrictions on acquisitions. Rule 5 9.187
Consequences of certain dealings. Rule 7 9.190
Disclosure of dealings during the offer period. Rule 8 9.191
N. The Mandatory Bid Obligation Under Rule 9 of the City Code
The obligation to make a mandatory bid 9.196
Restrictions on the conditions of a mandatory offer. Rule 9.3 9.202
Competition law issues: references to the Competition Commission
and the European Commission. Rule 9.4 9.206
Price and consideration under a mandatory bid. Rule 9.5 9.207
Obligations of directors selling shares. Rule 9.6 9.208
Restrictions on the exercise of control by an offeror. Rule 9.7 9.209
The meaning of acting in concert for purposes of Rule 9 of the
City Code 9.210
Possible requirement to make a mandatory offer due to redemption
or repurchase by a company of its own securities. Rule 37 9.232
10. Defensive Measures in UK Takeovers
A. An Overview of Defensive Measures in the UK: Contrasts with US
Law and Practice
Introduction 10.01
Defensive options in the UK: contrasts with the US 10.05
General fiduciary duties of directors, obligations under the City
Code and the Companies Act 1985 10.09
Restrictions on responsive defensive measures: General Principle 7
and Rule 21 10.23
Restrictions on obstructive defensive litigation in UK takeovers 10.27
B. Defensive Actions in Response to a Hostile Offer
Criticism of the offer and the offeror—the offeree board defence
document 10.33
Management sponsored alternative transaction—defensive
recapitalization 10.43
Competitive bidding contests 10.46
C. Defensive Measures Adopted in Advance of an Offer
Introduction 10.67
Classes of shares or convertible securities with limited or
super voting rights 10.69
Defensive share issuance to a friendly third party or an employee
trust 10 75
Defensive share repurchase programmes 10.96
C. CROSS BORDER TRANSACTIONS
I. Cross Border Mergers and Takeovers in the UK and the US
A. Introduction 11.01
B. Cross Border Acquisitions for Cash 11.06
Acquisition of UK Target for cash 11.07
Acquisition of US Target for cash 11.08
C. Acquisition of UK Target by US Acquiror in Consideration for
Shares 11.09
D. Acquisition of US Target by UK Company for Shares 11.11
E. An Overview of Certain Exemption From US Registration
Requirements in Cross Border Transactions 11.12
Offshore offerings: Regulation S 11.13
Private placements, Rule 144A and vendor placements 11.15
F. Excluding US Holders and Tier I and II Exemptions for
Foreign Private Issuers
Introduction: excluding US holders from an offer; SEC cross border
elease 11.17
The Tier I Exemption 11.24
The Tier 11 Exemption 11.31
Determining thresholds of US ownership of Target securities 11.38
G. Rule 14e 5, UK City Code and Tier I Exemptions for
Purchases Made During an Offer Period 11.41
Exemption for offers under the UK City Code 11.42
Exemption for Tier I transactions 11.43
H. Dual Listed Company Transactions
Introduction 11.45
Separate entities or parallel structures 11.47
Combined entities or joint venture structure 11.48
The twinned entities/stapled stock structure 11.51
Application of the City Code to DLC structures; anti takeover
provisions in a DLC structure 11.52
I. The EU Directive on Takeovers
Introduction 11.55
An overview of the principal provisions of the Takeover
Directive 11.60
Appendix 771
Index 775
|
| adam_txt |
CONTENTS—SUMMARY
Tables of Cases xxv
Tables of Primary and Secondary Legislation xli
A. TAKEOVERS IN THE US—LAW AND PRACTICE
1. Merger and Tender Offer Structures in the US 3
2. The US Federal Regulatory Structure 87
3. US State Anti takeover Statutes 169
4. Fiduciary Duties in US Corporate Takeovers:
The Business Judgment Rule, the Unocal Test, and the
Revlon Auction Duty 211
5. Defensive Measures Against Corporate Takeovers 311
6. Proxy Contests and Written Consent Solicitations
in the US 427
B. TAKEOVERS IN THE UK—LAW AND PRACTICE
7. The Framework of UK Takeover Regulation 495
8. Stakebuilding Below the 30% 'Control' Threshold;
the 'SARs' and Partial Offers; Statutory Schemes of
Arrangement and Compulsory Acquisitions of Minority Shares 555
9. The Regulation of Takeovers under the City Code 593
10. Defensive Measures in UK Takeovers 693
C. CROSS BORDER TRANSACTIONS
11. Cross Border Mergers and Takeovers in the UK and the US 743
Appendix 771
Index 775
TABLE OF CONTENTS
Tables of Cases xxv
Tables of Primary and Secondary Legislation xli
A. TAKEOVERS IN THE US—LAW AND PRACTICE
1. Merger and Tender Offer Structures in the US
A. Overview of Recommended/Negotiated Acquisitions in the US:
Long form Mergers and Recommended Tender Offers
Introduction—an overview of recommended/negotiated
acquisitions compared with hostile takeovers 1.01
Negotiated/recommended acquisitions: the long form
stock for stock merger 1.04
Negotiated/recommended acquisitions: the cash tender offer
followed by a back end 'freezeout' merger 1.13
Negotiated/recommended acquisitions: share exchange offers—
a viable alternative 1.22
B. Mechanics of Long form Mergers
Introduction 1.27
Merger structures 1.30
Merger mechanics under the Delaware General Corporation
Law—Sections 251 through 261 1.40
C. Principal Clauses in Agreements for Negotiated/
Recommended (i) Long form Mergers and (ii) Tender Offers
Introduction 1.62
Confidentiality agreements 1.63
Merger Agreement in multi step recommended cash tender offer
followed by a back end freezeout merger 1.65
Merger Agreements in long form stock for stock mergers 1.82
Financial advisor's fairness opinions 1.117
D. Hostile Takeover Techniques: Tender Offers and Shareholder
Coercion
Introduction 1.118
Historical development of hostile coercive tender offers 1.122
Coercion in tender offers; US and UK regulatory responses 1.126
Creeping acquisitions in hostile tender offers: acquiring a
beachhead stake 1.136
E. Eliminating Minority Shareholders Through Back end
'Freezeout' Mergers; Appraisal Rights and Other Remedies
Introduction 1.139
Delaware's short form 'freezeout' merger statute: Section 253 1.142
'Proper business purpose' doctrine eliminated as a requirement
for a freezeout merger 1.148
Dissenting from the freezeout merger: minority shareholder
remedies and appraisal rights 1.149
Entitlement to the statutory appraisal remedy 1.158
Determining the 'fair value' of the dissenting shares in an
appraisal procedure: from the 'Delaware block' method
to the 'liberalized test of entire fairness' 1.170
The test of 'entire fairness' under Weinberger v. UOP, Inc. 1.194
. The US Federal Regulatory Structure
A. Introduction: An Overview of the Williams Act 2.01
B. Acquisitions of 5% or More of the Target's Securities:
Schedules 13D and 13G Filings
The reporting requirement of Section 13(d) 2.11
Reporting on the short form Schedule 13G 2.12
The' 10 day window' 2.14
Beneficial ownership 2.15
Joint and group filings 2.20
Meaning of'group' for purposes of Section 13(d) and (g) 2.21
Content of Schedule 13D 2.24
Schedule 13G 2.31
Content of Schedule 13G 2.36
Amendments to Schedules 13D and 13G 2.47
C. Tender Offer Mechanics: Sections I4(d) and l4(e) of the Securities
Exchange Act 1934, and Regulations 14D and 14E
Introduction 2.50
SEC'sM AReleaseNo.33 7760; 34 42055;IC 24107;
File No. S7 28 98—effective January 24,2000 2.51
Section I4(e) and Regulation 14E: rules which govern all tender
offers and exchange offers 2.52
Section 14(d) and Regulation 14D 2.56
Commencement of a tender offer, filing requirements, and
dissemination of tender offer materials 2.63
Communications before and after the formal commencement
of an offer 2.66
Dissemination by long form publication, or a summary
advertisement or the 'use of stockholder lists and security
position listings' 2.68
Specific rules for share exchange offers—'early commencement'
and balancing the regulation of cash tender offers and share
exchange offers 2.70
Early commencement of exchange offers—Rule I4d 4(b) 2.75
D. Tender Offer Materials
The Schedule TO and the 'Offer to Purchase' 2.79
Contents of the Offer to Purchase 2.83
E. The Timetable for a Tender Offer
Twenty US business day minimum offer period 2.103
Subsequent offering period following the initial twenty business
day offerperiod 2.104
Prompt payment 2.105
Shareholder withdrawal rights 2.106
Statutory pro rata requirements 2.107
The all holders and best price rules 2.108
Restrictions on purchases of Target shares after commencement
of the tender offer 2.111
F. Target Corporation Board's Response to the Tender Offer
Rule 14e 2 and Rule 14d 9 2.112
The Schedule 14D 9 2.118
Amendments to Schedule 14D 9 2.128
G. Tender Offers and 'Street Sweeps'
Absence of a definition of 'tender offer' 2.129
'Street sweeps' 2.131
The 'eight factor' test—the test in Wellman v. Dickinson 2.135
H. Proposals for Reform 2.141
I. The General Antifraud Provision of Section I4(e) of the
Williams Act: An Overview of the Erstwhile Competition
Between Federal Law and State Law Regulation of Tender
Offers 2.144
J. Going Private Transactions: Rule 13e 3 and Schedule
13E 3
Introduction 2.155
Special committee of independent outside directors 2.159
Applicable standard of judicial review in 'going private'
transactions 2.162
Application of Rule 13e 3 2.167
Contents of the Schedule 13E 3 2.170
K. An Overview of the Hart Scott Rodino Anti Trust
Improvements Act
Premerger notification requirements 2.190
Threshold tests for application of the HSR 2.191
Valuation of securities and assets for purposes of the HSR 2.194
Statutory exemptions from the filing obligation 2.196
Acquisition of the securities or assets of foreign companies 2.200
HSR filing procedures and waiting periods—initial waiting
period of 15 calendar days for cash tender offers, and 30
calendar days for other transactions 2.203
3. US State Anti takeover Statutes
A. Introduction: First Generation Anti takeover Statutes 3.01
B. The US Supreme Court's Judgment in
Edgar v. MITE Corp. 3.08
C. The New Era of Second Generation Takeover Statutes and
the US Supreme Court's Judgment in CTS Corp.
v. Dynamics Corp. of America 3.12
D. Second Generation Anti takeover Statutes 3.23
Control share acquisition statutes 3.24
Supermajority and fair price statutes 3.29
Control share cash out statutes 3.23
Disgorgement and anti greenmail statutes 3.34
Constituency and corporate interest group statutes 3.37
Disclosure statutes 3.42
E. Third Generation Anti takeover Statutes: Business
Combination Statutes 3.44
The New York Business Combination Statute 3.49
Delaware Business Combination Statute 3.54
4. Fiduciary Duties in US Corporate Takeovers: The Business
Judgment Rule, the UnocalTest, and the Revlon Auction Duty
A. Introduction: Standards of Judicial Review 4.01
The procedural posture of takeover litigation under Delaware
law 4.03
The crucial importance of determining the correct standard of
judicial review: the traditional business judgment rule; entire
fairness, the Unocal standard; and the Blasius standard 4.04
B. The Separation of Ownership and Control and General
Fiduciary Principles: US and UK Principles 4.10
C. The Business Judgment Rule in US Takeovers
The nature of the business judgment rule 4.14
Rationale of the business j udgment rule 4.17
The traditional allocation of burdens under the business judgment
rule 4.21
The business judgment doctrine: less protection for defensive
measures? 4.23
Elements of the business judgment rule: a framework for discussing
the duty of loyalty and the duty of care 4.26
Aspects of the duty of loyalty in corporate takeovers 4.28
Aspects of the duty of care in corporate takeovers 4.39
D. The Evolution and Structure of the UnocalTtst
Objections to applying the traditional business judgment rule in
takeover transactions 4.55
The dilemma facing the Cheffprogeny and the answer provided by
Unocal 4.59
The structure of the Unocaltest 4.64
Burden shifting under Unocal—shifting the initial burden to the
defendant directors 4.69
The first stage of Unocal's inquiry: the meaning of a 'threat' for
purposes of Unocal 4.72
The second stage of Unocal's inquiry: the 'reasonableness' of a
defensive tactic; a 'range of reasonableness' under Unitrin 4.75
E. The Application of the Unocal Test in the Delaware Courts:
Anderson, Clayton, and Interco to Unitrin
Introduction 4.79
Threats of structural coercion 4.80
Threats of substantive coercion: Anderson, Clayton 4.81
Threats of substantive coercion: Interco 4.86
The Interco progeny and increasing formalism: Grand Metropolitan
v. Pillsburyand PolaroidII 4.93
A return to die flexible Unocaltest—the decision in Paramount
Communications 4.98
A summary and conclusion on the Interco progeny and Paramount
Communications—implications for the 'just say no' defence 4.104
An expanded Unocaltest—'draconian' defensive tactics and a
'range of reasonableness': Unitrin, Inc. v. American General
Corp. 4.111
F. When Does the Unocal Analysis Apply? Standard Business
Decisions v. Defensive Measures; Mergers v. Defensive
Measures; Enhanced Protection for Pre Planned Anticipatory
Defensive Measures; Shareholder Ratification
Standard business decisions v. defensive measures 4.123
Mergers v. defensive measures 4.126
Enhanced protection for pre planned anticipatory defensive
tactics 4.128
The effect of ratification by the Targets shareholders on the
validity of defensive measures, and the applicable standard of
review 4.132
G. The Target Directors' Auction Duty Under Revlon and
Macmillan
Introduction: The 'Revlon auction duty' 4.137
The initial uncertainty following Revlon 4.141
The auction duty as developed in Macmillan and Paramount!QVC
—a' range of reasonableness' 4.147
When does the duty to conduct an auction arise? The judgments
in Paramount Communcations and Paramount/QVC 4.157
Tilting the level playing field 4.169
The duty to solicit bids 4.192
5. Defensive Measures Against Corporate Takeovers
A. Introduction 5.01
B. Shark Repellents—Structural Defences in the Certificate of
Incorporation or By laws
Introduction: charter and by law amendments 5 04
The defensive effect of shark repellents 5 08
Supermajority voting requirements and fair price provisions 5 10
Classified or staggered board of directors 5 18
Removal of directors only for 'cause' 5 22
Cumulative voting provisions 5.24
Filling vacancies and newly created directorships 5.28
Control over the corporate voting machinery: limitations on
calling special meetings, written consent procedure and advance
notice requirements 5.34
C. Dual Class Capital Structures; 'Blank Cheque' Preferred Stock
Introduction 5.35
Dual class capital structures under Delaware law 5.36
Rule 19c 4 and Stock Exchange policy 5 43
D. Restrictions on the Transfer of Stock; Voting Agreements etc.
Restrictions on stock transfers 5 46
Voting trusts and other voting agreements 5 48
E. Shareholder Rights Plans—Poison Pills
Introduction 5 50
The Delaware Supreme Court's decision in Moran v. Household
International, Inc. 5.57
Mechanics for adopting a poison pill 5.63
Mechanics and features of the 'flip in/flip over' poison pill 5.69
Hypothetical Target company poison pill example 5.76
Redemption of the rights 5.78
Variations of the standard poison pill: 'chewable pills'; shareholder
referendums; adverse person provisions; permitted offer
exception 5.80
Circumventing the poison pill through a proxy contest: 'dead hand'
or continuing director provisions 5.84
Judicial scrutiny of poison pills 5.93
F. Defensive Restructuring Programmes: Recapitalizations;
Defensive Share Issuances; Repurchases and 'Greenmail';
'Crown Jewels' Asset Sales and Spin offs
Recapitalizations: introduction 5.106
Implementation of a defensive recapitalization 5.110
Recapitalizations: the anti takeover effect of'poison debt' 5.113
Increased management and ESOP voting power in defensive
recapitalizations 5.115
Judicial scrutiny of defensive recapitalizations 5.116
Defensive spin offs and 'crown jewel' sales 5.146
Judicial scrutiny of'crown jewel' sales and 'spin offs' 5.150
Defensive share insurances and 'white squire' transactions 5.160
Defensive share repurchase plans: self tender offers, defensive
street sweeps, and standstill agreements 5.184
Defensive self tender offers: compliance with Rule 13e 4 of the
Williams Act 5.190
Judicial scrutiny of defensive self tender offers 5.219
Defensive street sweeps 5.228
Standstill agreements and confidentiality agreements 5.231
G. Greenmail Payments 5.243
The opposition to greenmail 5.244
The arguments in support of greenmail 5.248
Judicial scrutiny of greenmail payments 5.254
H. Lock up Agreements
Share and crown jewel or asset lock up agreements 5.259
I. No shop/No talk Provisions, Fiduciary Out Clauses, and
Break Fees
No shop/no talk provisions; 'force the vote' clauses; fiduciary
duty out clauses 5.266
J. Obstructive Litigation as a Defensive Tactic 5.282
6. Proxy Contests and Written Consent Solicitations in the United
States
A. Introduction: Proxy Contests, Consent Solicitations, and
Corporate Control 6.01
B. Overview of Federal and State Law Governing Proxy
Solicitations Section l4(a) and Regulation 14A of the
Exchange Act
Introduction 6.14
Federal law regulation of proxy solicitations 6.17
Rule I4a 12: 'Solicitation before furnishing a proxy statement'
and the requirement to provide a proxy statement under
Rulel4a 3 6.18
Rules I4a 1 and l4a 2: 'solicitation' 6.22
Rule l4a 3 and Schedule 14A: disclosure requirements 6.27
Rule l4a 4, Rule l4a 5, and Rule l4a 10: proxy card and
presentation of information in proxy statements; 'short slates'
and discretionary voting authority 6.54
Rule l4a 6: filing requirements and confidential treatment of
preliminary proxy materials 6.58
Rule l4a 7: shareholder lists; shareholder inspection rights under
state law 6.62
Shareholder inspection rights under state law 6.64
Rule l4a 8: inclusion of shareholder proposals in the corporation's
proxy statement 6.68
Rule I4a 13: duty of corporation to communicate with beneficial
owners 6.74
Rule l4a 9: general anti fraud provision 6.75
State law duties of disclosure 6.77
C. State Corporation Laws Regulating Proxy Solicitations and
Shareholder Meetings
Introduction 6.85
Quorum requirements, voting and supermajority voting
requirements, notice, and record date provisions 6.87
Annual shareholders' meetings and the calling of special shareholders'
meetings: postponing shareholders' meetings in corporate control
contests 6.92
Advance notice provisions and requirements, and shareholder
nominations and proposals 6.100
D. Corporate Action by Written Consent
Introduction 6.108
The use of the written consent procedure in corporate control
contests 6.112
The fixing of a record date in the written consent procedure 6.120
E. Impermissible Manipulation of the Corporate Machinery:
The 'Compelling Justification'Test in Blasius Industries,
Inc. v. Atlas Corp. 6.123
F. The Interaction Between the 'Compelling Justification' Test
under Blasius, and the Unocal Standard of Review 6.133
B. TAKEOVERS IN THE UK—LAW AND PRACTICE
7. The Framework of UK Takeover Regulation
A. Introduction: The Central Role of the City Code on Takeovers
and Mergers; Interaction with the Companies Act 1985 7.01
B. General Principles of the City Code 7.03
Overview of the General Principles 7.04
C. The City Code: Rules of Best Practice, Jurisdictional Ambit,
and Administration
Rules of best practice 7.12
Jurisdictional ambit of the City Code 7.14
Administration of the City Code 7.18
D. The Self regulatory Nature of the City Code
Background and enforcement 7.25
Judicial review of Panel decisions: the judgments in Datafin and
Guinness 7.32
E. An Overview of UK Acquisition Methods
Offers under the City Code, and schemes of arrangement under
the Companies Act 1985 7.41
Overview of a typical offer made under the City Code 7.51
F. The Financial Services and Markets Act 2000
Background and overview 7.60
The regulation of market abuse 7.63
G. Stock Exchange Regulations Affecting Takeovers in the UK
Listing rules—the 'Purple Book' 7.71
Purple Book, Chapter 10: transactions; and paragraph 10.45:
takeovers and mergers 7.76
H. Financial Assistance and MBOs under Section 151 of the
Companies Act 1985
Introduction 7.87
Section 151—the general prohibition 7.91
The meaning of'financial assistance' 7.94
Exceptions to Section 151 7.97
Financial assistance in public to private MBO transactions 7.107
Liability for breach of Section 151 7.119
Reform of Sections 151 to 158 of the Companies Act 1985 7.123
I. UK Merger Control under the Enterprise Act 2002
Introduction and overview 7.124
Transactions subject to the Enterprise Act 2002, and applicable
thresholds 7.127
Timetable for reference 7.129
Review and referral procedures of the OFT; confidential guidance 7.130
Review process of the CC and the 'SLC determination 7.135
J. Overview of Competition Law Governance under the EC
Merger Regulation
Introduction 7.140
Notification on Form CO 7.142
Thresholds for determining a 'community dimension' 7.144
I. Stakebuilding Below the 30% 'Control' Threshold; the
'SARs' and Partial Offers; Statutory Schemes of Arrangement
and Compulsory Acquisitions of Minority Shares
A. Introduction 8.01
B. Disclosure under Part VI Companies Act 1985: Acquisitions
of 3% or more of the Targets shares
Introduction 8.03
The disclosure of'notifiable interests' of 3% of a class of shares 8.04
Information to be disclosed under Part VI of the Companies Act
1985 8.06
'Interests' in shares for purposes of Part VI of the Companies Act 8.07
'Notifiable interests' held by a group of persons; 'concert parties' 8.10
Penalties and investigations under Part VI of the Companies Act
1985 8.15
Statutory investigations 8.18
C. The Substantial Acquisition Rules ('SARs')—'Dawn Raids'
Introduction 8.23
The provisions of the SARs 8.28
D. Partial Offers: Restrictions under Rule 36 of the City
Code 8.39
E. Statutory Mechanisms for Effecting Takeovers in the UK
Scheme of arrangement under Sections 425 427 of the
Companies Act 1985 8.47
Reconstruction in the course of voluntary liquidation under
Section 110 of the Insolvency Act 1986 8.61
F. Compulsory Acquisition of Minority Shareholders
Introduction 8.64
Sections 428 430A of the Companies Act 1985: compulsory
acquisition of shares 8.65
Elimination of minority shareholders pursuant to a scheme of
arrangement under Sections 425 427 of the Companies Act
1985 8.82
Elimination of minority shareholders pursuant to a reconstruction
under Section 110 of the Insolvency Act 8.85
Elimination of minority shareholders pursuant to a reduction of
capital under Section 135 of the Companies Act 8.86
Provisions of the articles of association allowing for the compulsory
acquisition of minority shares 8.91
9. The Regulation of Takeovers under the City Code
A. Introduction: An Overview of the City Code 9.01
The definition of'control' under the City Code 9.04
Definition of'acting in concert' under the City Code 9.07
Definition of'associate' under the City Code 9.09
B. Preliminary Steps: The Approach, Announcements of the Offer,
and Independent Financial Advice under Rules 1, 2, and 3
of the City Code
The approach. City Code, Rule 1, and General Principle 3 9.10
Secrecy, timing, and contents of announcement. City Code,
Rule 2 9.13
Independent financial advice. City Code, Rule 3 9.31
C. The Regulatory Timetable, Revisions to the Offer, and
Shareholder Withdrawal Rights: Rules 30 to 34
Posting the offer document and the offeree board circular.
Rule 30 9.38
The regulatory timetable 9.39
Restriction on Target company announcements after the 39th day.
Rule 31.9 9.44
No extension statements. Rule 31.5 9.45
Payment of consideration. Rule 31.8 9.47
Revisions to the offer. Rule 32 9.48
No increase statements. Rule 32.2 9.51
Alternative offers. Rule 33 9.54
Withdrawal rights. Rule 34 9.56
D. Timetable for a Bid 9.57
E. Counteracting Shareholder Coercion in Takeovers:
Acceptance Conditions, Pricing Requirements, and the
Prohibition of Shareholder Discrimination 9.58
The 50% acceptance condition. Rule 10 9.59
Announcement of acceptance levels. Rule 17 9.62
Nature and amount of the offer price. Rule 11 and Rule 6 9.65
Comparable offers and offers for convertible securities. Rules 14
and 15 9.79
The prohibition of special arrangements with favourable
conditions. Rule 16 9.83
Inducement fees ('break fees'). Rule 21.2 9.90
F. Conditions to Which the Offer is Subject. Rules 12 and 13
Competition law reference. Rule 12 9.93
Rule 13 Conditions 9.95
G. Post offer Restrictions on Subsequent Offers and Acquisitions.
Rule 35
Introduction 9.104
Post offer restrictions following a withdrawn or lapsed offer.
Rule 35.1 (a) 9.108
The obligation to confirm whether or not an offer will be made.
Rule35.1(b) 9.109
Regulation of the price of post offer purchases by a majority
shareholder. Rule 35.3 9.112
Panel dispensations from Rules 35.1 and 35.2 9.113
H. Disclosure Requirements and the Regulation of Information
Under the City Code: Standards of Care and Documents in
Takeover Transactions
Introduction 9.116
Directors oversight function 9.118
General obligations as to information, responsibility for information,
and standards of care as to information. Rules 19 and 23 9.120
Equality of information to shareholders and competing bidders.
Rule 20 9.130
The availability of documents and the display of documents.
Rules 19.7 and 19.8, and Rule 26 9.136
I. The Offer Document and Disclosures by the Offeror. Rule 24
Introduction 9.139
Rule 24 of the City Code 9.140
J. The Target Company's Circular: The Response of the Target
Company's Board of Directors. Rule 25
Introduction 9.159
Views of the Target company's board of directors and comments
on the offeror's future intentions regarding the Target company.
Rules 25. land 25.2 9.160
Rule 25.3. Shareholdings and dealings 9.162
Rule 25.4. Directors' service contracts 9.163
Rule 25.5. Arrangements in relation to dealings 9.164
Rule 25.6. Material contracts 9.165
K. The Regulation of Profit Statements and Asset Valuations.
Rules 28 and 29
Profit forecasts. Rule 28 9.166
Asset valuations. Rule 29 9.172
L. Advertisements, Telephone Campaigns, Interviews, and
Debates
Advertisements. Rule 19.4 9.176
Telephone campaigns. Rule 19.5 9.179
Interviews and debates. Rule 19.6 9.180
M. Stakebuilding and Disclosure of Share Dealings: City Code,
Rules 4, 5, 7, and 8
Introduction 9.181
Restrictions on dealings. Rule 4 9.182
Timing restrictions on acquisitions. Rule 5 9.187
Consequences of certain dealings. Rule 7 9.190
Disclosure of dealings during the offer period. Rule 8 9.191
N. The Mandatory Bid Obligation Under Rule 9 of the City Code
The obligation to make a mandatory bid 9.196
Restrictions on the conditions of a mandatory offer. Rule 9.3 9.202
Competition law issues: references to the Competition Commission
and the European Commission. Rule 9.4 9.206
Price and consideration under a mandatory bid. Rule 9.5 9.207
Obligations of directors selling shares. Rule 9.6 9.208
Restrictions on the exercise of control by an offeror. Rule 9.7 9.209
The meaning of'acting in concert' for purposes of Rule 9 of the
City Code 9.210
Possible requirement to make a mandatory offer due to redemption
or repurchase by a company of its own securities. Rule 37 9.232
10. Defensive Measures in UK Takeovers
A. An Overview of Defensive Measures in the UK: Contrasts with US
Law and Practice
Introduction 10.01
Defensive options in the UK: contrasts with the US 10.05
General fiduciary duties of directors, obligations under the City
Code and the Companies Act 1985 10.09
Restrictions on responsive defensive measures: General Principle 7
and Rule 21 10.23
Restrictions on obstructive defensive litigation in UK takeovers 10.27
B. Defensive Actions in Response to a Hostile Offer
Criticism of the offer and the offeror—the offeree board defence
document 10.33
Management sponsored alternative transaction—defensive
recapitalization 10.43
Competitive bidding contests 10.46
C. Defensive Measures Adopted in Advance of an Offer
Introduction 10.67
Classes of shares or convertible securities with limited or
super voting rights 10.69
Defensive share issuance to a friendly third party or an employee
trust 10 75
Defensive share repurchase programmes 10.96
C. CROSS BORDER TRANSACTIONS
I. Cross Border Mergers and Takeovers in the UK and the US
A. Introduction 11.01
B. Cross Border Acquisitions for Cash 11.06
Acquisition of UK Target for cash 11.07
Acquisition of US Target for cash 11.08
C. Acquisition of UK Target by US Acquiror in Consideration for
Shares 11.09
D. Acquisition of US Target by UK Company for Shares 11.11
E. An Overview of Certain Exemption From US Registration
Requirements in Cross Border Transactions 11.12
Offshore offerings: Regulation S 11.13
Private placements, Rule 144A and vendor placements 11.15
F. Excluding US Holders and 'Tier I and II Exemptions' for
'Foreign Private Issuers'
Introduction: excluding US holders from an offer; SEC cross border
elease 11.17
The Tier I Exemption 11.24
The Tier 11 Exemption 11.31
Determining thresholds of US ownership of Target securities 11.38
G. Rule 14e 5, UK City Code and Tier I Exemptions for
Purchases Made During an Offer Period 11.41
Exemption for offers under the UK City Code 11.42
Exemption for Tier I transactions 11.43
H. Dual Listed Company Transactions
Introduction 11.45
Separate entities or 'parallel' structures 11.47
Combined entities or joint venture structure 11.48
The twinned entities/stapled stock structure 11.51
Application of the City Code to DLC structures; anti takeover
provisions in a DLC structure 11.52
I. The EU Directive on Takeovers
Introduction 11.55
An overview of the principal provisions of the Takeover
Directive 11.60
Appendix 771
Index 775 |
| any_adam_object | 1 |
| any_adam_object_boolean | 1 |
| author | Kenyon-Slade, Stephen |
| author_facet | Kenyon-Slade, Stephen |
| author_role | aut |
| author_sort | Kenyon-Slade, Stephen |
| author_variant | s k s sks |
| building | Verbundindex |
| bvnumber | BV021453581 |
| classification_rvk | PU 5450 |
| ctrlnum | (DE-599)BVBBV021453581 |
| discipline | Rechtswissenschaft |
| discipline_str_mv | Rechtswissenschaft |
| edition | 1. publ. |
| format | Book |
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| geographic_facet | Großbritannien USA |
| id | DE-604.BV021453581 |
| illustrated | Not Illustrated |
| index_date | 2024-07-02T14:05:49Z |
| indexdate | 2024-07-09T20:36:20Z |
| institution | BVB |
| isbn | 0198260512 |
| language | German |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-014673815 |
| open_access_boolean | |
| owner | DE-M382 |
| owner_facet | DE-M382 |
| physical | LV, 832 S. |
| publishDate | 2004 |
| publishDateSearch | 2004 |
| publishDateSort | 2004 |
| publisher | Oxford Univ. Press |
| record_format | marc |
| spelling | Kenyon-Slade, Stephen Verfasser aut Mergers and takeovers in the US and UK law and practice by Stephen Kenyon-Slade 1. publ. Oxford Oxford Univ. Press 2004 LV, 832 S. txt rdacontent n rdamedia nc rdacarrier Fusionskontrolle (DE-588)4071521-8 gnd rswk-swf Großbritannien (DE-588)4022153-2 gnd rswk-swf USA (DE-588)4078704-7 gnd rswk-swf USA (DE-588)4078704-7 g Fusionskontrolle (DE-588)4071521-8 s DE-604 Großbritannien (DE-588)4022153-2 g HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=014673815&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Kenyon-Slade, Stephen Mergers and takeovers in the US and UK law and practice Fusionskontrolle (DE-588)4071521-8 gnd |
| subject_GND | (DE-588)4071521-8 (DE-588)4022153-2 (DE-588)4078704-7 |
| title | Mergers and takeovers in the US and UK law and practice |
| title_auth | Mergers and takeovers in the US and UK law and practice |
| title_exact_search | Mergers and takeovers in the US and UK law and practice |
| title_exact_search_txtP | Mergers and takeovers in the US and UK law and practice |
| title_full | Mergers and takeovers in the US and UK law and practice by Stephen Kenyon-Slade |
| title_fullStr | Mergers and takeovers in the US and UK law and practice by Stephen Kenyon-Slade |
| title_full_unstemmed | Mergers and takeovers in the US and UK law and practice by Stephen Kenyon-Slade |
| title_short | Mergers and takeovers in the US and UK |
| title_sort | mergers and takeovers in the us and uk law and practice |
| title_sub | law and practice |
| topic | Fusionskontrolle (DE-588)4071521-8 gnd |
| topic_facet | Fusionskontrolle Großbritannien USA |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=014673815&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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