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takeover question

  • 12-02-2004 04:09AM
    #1
    flogen
    Moderators, Society & Culture Moderators Posts: 10,250 Mod ✭✭✭✭


    what with Cubic Expression now holding just under 29% of Man Utd, and a takeover looking imminent, I was wondering if something could be cleared up in relation to takeovers.

    ok, from what i gather, once a person or grouping holds 30% of a company they must launch a take over bid... right??
    if so, I assume that a sucessful bid would be when the said person/group ends up with a majority of shares (say 51%).... am i right here too?
    again, if so, and heres my question, what if the bid fails? can the group hold onto their 30% stake, or must they sell and once again hold a max of 29.9%?? or would they be forced to sell all shares (i know bskyb did it, but was that because they gave up or were they made to??)
    Its just a general wondering, as Im interested to know the possible outcomes of this perticular situation if a bid goes ahead.

    Flogen


Comments

  • #2
    Victor
    Registered Users, Registered Users 2 Posts: 78,807 ✭✭✭✭Victor


    The rough basics. I understand they must make a bid in excess of effectively the current price (I think this gets averaged over the last few months to stop a sudden predartory takeover after a sharp price fall). f this is accepted by people then they acquire that percentage of the company. 50+% (effectively only 45% or so) gives them effective control. 80% means they can compulsorily acquire the company (as happened with eircom). If no one accepts, then they can continue acquiring on the open market for about a year or so, at which point I understand they need to make another bid (I suspect if they pass 50% in the year they may need to make another bid).


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