| Commentary

176 General

| Commentary

(d) Building a stake in the target company

176 General

The offeror may decide to build up its stake in a listed target company before approaching the company1. For instance, if it can build up a strategic 25% share in the target, this is likely to increase its chances of securing control of the target company and deter any competing bidder. The effect of the City Code on Takeovers and Mergers must be considered2.

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