§ Baroness Miller of Hendonasked Her Majesty's Government:
In the light of their commitment during the passage of the Postal Services Bill through this House, that in connection with acquisitions and disposals, the Post Office would conform to the reporting requirements of the Stock Exchange, why the Post Office did not immediately announce publicly the failure of the recent negotiations. [HL3892]
§ Lord Sainsbury of TurvilleDuring the passage of the Postal Services Bill, I said that it was our intention "that the Post Office company should provide transparent information on completed acquisitions and disposals along the lines of the London Stock Exchange disclosure requirements;" (Official Report, 29 June 2000, col 1118). Such a requirement has been 8WA placed on the company (now Consignia Holdings plc) in Article 13 of the company's articles of association. The company's recent discussions with TPG did not reach a point that required any announcement to be made under either the articles of association or the requirements of the Stock Exchange.
Under Chapter 9. paragraph 9.4 of the UK Listing Authority Sourcebook, a company need not notify a regulatory information service about impending developments or matters in the course of negotiation. In addition, the possible merger negotiations between Consignia and TPG did not reach a stage where an announcement was required under section 2.2 of the Takeover Panel's City Code on Takeovers and Mergers.
§ Baroness Miller of Hendonasked Her Majesty's Government:
In the light of their commitment during the passage of the Postal Services Bill through this House that, in connection with acquisitions and disposals, the Post Office would conform to the reporting requirements of the Stock Exchange, what were the terms of the failed transaction that were being negotiated; what was the reason for the failure of the negotiations; and why the Post Office has not announced them. [HL3893]
§ Lord Sainsbury of TurvilleThe terms of the transaction being discussed were commercially confidential both to Consignia but also to TPG which is a listed company. After a number of discussions with TPG, Consignia decided that a deal was not possible on acceptable terms. The Government agreed with this judgment.
Under Chapter 9. paragraph 9.4 of the UK Listing Authority Sourcebook, a company need not notify a regulatory information service about impending developments or matters in the course of negotiation. In addition, the possible merger negotiations between Consignia and TPG did not reach a stage where an announcement was required under section 2.2 of the Takeover Panel's City Code on Takeovers and Mergers.