City Takoever Code

Umm, can one of you finance specialists tell me, is this correct?

For example, the United Kingdom’s City Code mandates a strict application of the MBR, where all bids for blocks of 30% or more of the stock must be followed by a bid for the remaining shares at the same price.

I didn\’t think that was strictly true. You can buy a block of shares greater than 29.9% without making a full offer: as long as you buy that block from one seller. Only if you\’ve bought from 2 or more do you have to make that full offer (at the highest price that you\’ve paid for some previous time limit).

Or am I "misremembering"?

3 thoughts on “City Takoever Code”

  1. I’m not absolutely positive but I think your quotation is correct, you are wrong. Once you accumulate 30% you are obliged to make an offer for the rest, regardless of how many people you bought your stake from.

  2. Here it says:

    Under Rule 9 of the City Code (”Rule 9”), when (i) any person acquires shares which, when taken together with shares already held by him or shares held or acquired by persons acting in concert with him, carry 30 per cent. or more of the voting rights of a company subject to the City Code or (ii) any person who, together with persons acting in concert with him, holds not less than 30 percent. but not more than 50 per cent. of the voting rights of a company subject to the City Code and such person, or persons acting in concert with him, acquires any voting rights, that person is normally obliged to make a general offer in cash to all shareholders to purchase their shares at the highest price paid by him, or any person acting in concert with him, within the preceding 12months.

    Which may or may not help.

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