| Commentary

177.3 Effect on offer price

| Commentary

177.3 Effect on offer price

An acquisition of shares pre-announcement may also have an effect on the price which the offeror is able to quote in its offer. This is because of the application of Rules 6 and 11 of the City Code on Takeovers and Mergers (City Code) which both seek to implement General Principle 1 of the Code requiring that the offeror should afford all shareholders of the same class equivalent treatment. Rule 6.1 deals with purchases in the period leading up to the announcement of a firm intention to make an offer. Unless the Panel on Takeovers

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