UK Takeover Code: Redressing the Balance in Favour of Targets

On 26 November 2012, the Panel on Takeovers and Mergers issued a statement in which it reviewed the changes it had made to the City Code on Takeovers and Mergers in September 2011. Statistics were provided in the Statement, from which tentative conclusions can be drawn as to whether the Amendments reduced deal flow or materially altered the manner in which bidders have been approaching public bids in the UK. In short, the Amendments do not seem to have stifled bid activity, but have had the intended effect of empowering bid targets more, at the highly sensitive time at the start of possible bid talks, and reducing the tactical advantage of offerors over offerees.