On 24 August 2012, the Takeovers Panel issued a Consultation Paper entitled Disclosure of Equity Derivative Positions.

The Panel is considering options for recommending law changes to require ongoing disclosure by persons who hold long equity derivative positions in public issuers and to include in the Takeover Code’s disclosure requirements for takeovers disclosures of relevant equity derivative positions. The Panel is concerned that long equity derivative positions of a derivative holder combined with a corresponding hedge position held by the derivative writer in underlying Code company securities may provide an opportunity for undisclosed stake building during the period leading up to a takeover bid.

For Bell Gully commentary on this paper, see our client update: Disclosure of equity derivatives – a solution to a problem that doesn’t exist?

Submissions on the paper close on 5 October 2012.