Search

The article discusses a recent statement by the British Government which will make it virtually impossible for a board to use the defence tactics used by the soccer team Manchester United Football Club during Malcolm Glazer's successful takeover of the club. In its recent response to the white paper on the Company Law Reform Bill, the Law Society said it generally supports the emphasis in the government's proposals on reducing burdens for companies. However, it argues that the changes will make it more difficult for directors of a company facing a hostile takeover or competing bids to balance the interests of the company against those of its selling shareholders.

Focuses on whether the BBC Trust can break BBC and sell of its commercial services. Failure of the government's Green Paper to resolve the conflict concerning the regulation of competition law and the position of BBC under the competition law; Conflict between the BBC Trust and Office of Communication in the enforcement of the competition law; Requirements in the European Commission's 2001 communication on the application of state aid rules to public service broadcasting.

Presents the view that the British Takeover Panel's efforts to bypass press battles on takeover will not work. Differing opinion on the value of the panel; Panel's focus on what sort of codicils companies should be able to put on the formal or preconditional bids they make under Rule 2.5 of the Takeover Code; Panel's launch of two consultation papers on the way bidders use informal bids under Rule 2.4 of the code.

Reports on the British Takeover Panel's proposal that the use of preconditional bids in public merger and acquisition be curtailed. Negative impact on bidders' strategy in gaining flexibility in deals financing; Panel's plan to release a consultation paper on preconditional bids.