Chapter 4 PTM Flashcards
What is a type A event?
Pension regular think that company will weaken its financial position
What can Pension Regulator Issue if there is a cause for concern
-contribution notice
-financial support resolution
-restoration order
Who does the Code apply to?
-public companies traded in the UK/island of mans
-if not traded, registered or have centrla control in these jurisdictions
-if private: stocks traded in the past 10 years
-
Who does the code not apply to
Code does not apply to OEICs
When can offeror suspend timetable if dont get regulatory clearance
Day 37
What is ACIN
Can withdraw acceptance anytime before the acceptance condition satisfied
How many general principles are there for the code?
6 general principles
What is acting in concert?
cooperate to obtain or consolidate control of a company or to frustrate the successful outcome of an offer for a company\
-pension schemes
-relatives of founders of companies
Whose responsibility to monitor share price and make announcements?
Offeror
What are the types of announcements
Firm announcement - must commit
Talks announcement - start of offer period
No intention to bid - no later than 28 days from offer period
What are some other announcements
-next working day of start of offer period
-if offeror increase bid price
What is rule 3
Must sought independent advice as to whether the offer is fair and reasonable
What is rule 4
Restrictions during offer period for:
-dealing in securities
-offeror and offeree cannot sell wtihout PTM consent and 24 hours notice
-cannot sell if under rule 9
What is Rule 5?
prevent someone from consolidating control. Unless
-someone already has 50% or more
-if it is from 1 shareholder, only transaction in last 7 days
-control arises due to new share issued
If break rule 5, must trigger rule 9
What is Rule 6?
Higheest price in last 3 months. Must offer full cash alternative
