Employee benefit trusts—concert party clearance from the Takeover Panel
Produced in partnership with Jeremy Glover (Share Schemes)
Practice notesEmployee benefit trusts—concert party clearance from the Takeover Panel
Produced in partnership with Jeremy Glover (Share Schemes)
Practice notesRelevance of the takeover code to share acquisitions by an EBT
It may be necessary to consult the Takeover Panel (Panel) in certain circumstances if the trustee of an Employee Benefit Trust (EBT) is acquiring Shares in a company.
If the trustee could be considered to be Acting in concert with others when it acquires the shares, this could result in the trustee being required to also extend its offer to buy shares to all other shareholders, in accordance with requirements under the City Code on Takeovers and Mergers (Code).
The Panel can be asked to confirm whether the trustee of an EBT will be presumed to be acting in concert for the purposes of these requirements under the Code. In some circumstances, the Code requires that the Panel must be consulted before certain share acquisitions by an EBT, as detailed below.
The Panel’s main functions are to issue and administer the Code and to supervise and regulate takeovers and other matters to which the Code applies. Its central objective is to
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