§ Mr. Austin MitchellTo ask the President of the Board of Trade if he will make a statement on the rights of shareholders and employees when companies receive a hostile takeover bid. [34102]
§ Mr. OppenheimThe city code on takeovers and mergers, administered by the takeover panel, applies to takeover bids involving public companies and some private companies. The code and the panel operate principally to ensure fair and equal treatment of all shareholders in relation to takeovers. The code's general principles and its detailed rules are designed to ensure, amongst other things: that all shareholders of the same class receive similar treatment; that they have sufficient information and advice to enable them to reach a properly informed decision and have sufficient time to do so; and that the board of the target company may not take action without the approval of the shareholders which could result in a bona fide offer being frustrated or in the shareholders being denied an opportunity to decide on its merits.
1578W