A ShareSoc news item by Cliff Weight, Director
Private investors lose out in corporate bids-
Takeover Panel must change rules to compel companies to disclose acquisition approaches sooner
ShareSoc Patron Lord Lee is campaigning for better disclosure in relation to takeover bids and has written this excellent detailed article in the Financial Times.
There have been a number of occasions when individual investors have lost money by buying or selling shares when they were not privy to information which arguably should have been disclosed to the market place. I don’t see how Boards can “act fairly between shareholders” as is required by the Companies Act, unless they disclose earlier. They should not wait until rumours leak out. That creates a false market and that is market manipulation, which is illegal.
It is time for a healthy debate and it is good news that The Takeover Board has agreed to meet Lord Lee and listen to his points of view.