The Takeovers Panel has released a consultation paper seeking submissions on issues associated with equity derivatives and their impact on the takeovers market. The Panel is considering recommending law changes to:
- require ongoing disclosure by persons who hold long equity derivative positions in public issuers; and
- include disclosures of relevant equity derivative positions in the Code's disclosure requirements.
Currently there is no explicit obligation in the Takeovers Code to disclose equity derivative positions in a Coderegulated transaction. The Panel is concerned to address the issue to avoid instances of undisclosed stake building during the period leading up to a takeover bid.
A copy of the consultation paper can be found here. Submissions on the consultation paper are due by 5 October 2012.