On 22 April 2013, the Takeover Panel announced the introduction of new rules in relation to defined benefit pension plans operated by target companies, where such companies are subject to a takeover bid. The new rules, which apply from 20 May 2013 onwards, provide, amongst other things, for:
- Greater disclosure requirements in offer announcements and documentation for bidders regarding their continued funding of the target’s pension plans.
- The requirement for pension plan trustees to be provided with certain information during the course of a takeover.
- The right for trustees to publish their opinion, during the course of a takeover, on the likely impact of a takeover on the target’s pension plans.
The changes, which are analogous to the existing provisions governing the bidder’s engagement with the target’s employee representatives, mean that the target’s pensions trustees will now benefit from a greater and earlier involvement in the offer process.
For more details on the changes, please see our recent article at the link below: http://www.squiresanders.com/files/Publication/e2051f6d-cb59-482c-bf77-72aa5ee9c23c/Presentation/PublicationAttachment/17c168fa-d82b-40b3-9cf5-75bb049bf995/UK-Takeover-Code-New-Pensions-Obligations.pdf
Takeover Panel Response Statement RS 2021/2: Pension Scheme Trustee issues available at: http://www.thetakeoverpanel.org.uk/wp-content/uploads/2008/11/RS2012021.pdf