Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

takeover question

Options
  • 12-02-2004 4:09am
    #1
    flogen
    Moderators, Society & Culture Moderators Posts: 10,245 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

  • Options
    #2
    Victor
    Registered Users Posts: 78,370 ✭✭✭✭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).


Advertisement