A Practitioner's Guide to the City Code on Takeovers and Mergers 2005-2006

"The City Code on Takeovers and Mergers" is designed to ensure high business standards and fairness to shareholders. The Code can be operated flexibly and rapidly as new situations arise and it places the onus on interested parties to keep up to date with developments in a constantly innovating marketplace. Having so far operated on the basis of self-regulation, it is proposed that the Code will have statutory force from 2006 when the Takeover Directive is implemented. The Code Committee has issued 20 consultation papers during its first four years of operation, with 18 having resulted in changes to the Code. Recent revisions have focused on conditions and preconditions, "put up or shut up" deadlines and market related issues. There are also new rules on offer announcements, reflecting the growing popularity of "virtual bids". In Europe, the Takeover Directive was finally adopted in April 2004 and Member States have until May 2006 to enforce it. The DTI issued a consultative document outlining its implementation proposals in January 2005 and the Panel has also published plans on making the necessary changes to its constitution, powers and procedures.
The implementation debate will, however, continue throughout 2005. "Since its first publication in 1988, "A Practitioner's Guide to The City Code on Takeovers and Mergers" has become a valuable resource for all those working in the area. The publication of a new edition each year will continue to help readers to keep up to date with the latest regulatory developments, and we welcome and support the publication of this 18th Edition." Richard Muley, Director General, The Panel on Takeovers and Mergers.