Affiliation:
1. İstanbul Medeniyet Üniversitesi
Abstract
The Takeover Code and Panel are integral to the regulation of mergers and acquisitions (M&As) and have a substantial role in controlling mergers and acquisitions which involve publicly traded companies in the UK. They serve to safeguard the interests of shareholders, maintain the integrity of shareholders and promote transparency in takeover processes in the UK. Therefore, undertakings somehow involved in takeover processes and bids must adhere to the Takeover Codes’ rules. In line with the Takeover Code, the Takeover Panel plays a crucial role in overseeing and enforcing the rules of the Takeover Code. However, the success of the Takeover Code and Panel is argued a lot lately. This article critically evaluates whether the historical development, substantive rules and current practice of the Takeover Panel and Code demonstrate a failure of self-regulation (market regulation). As a result, the need for direct state regulation of the market for corporate control is found. Thus, the remedy to the problem arising from the nature of the Takeover Code is searched in line with the Panel decisions, statutes and academic commentary.
Reference37 articles.
1. Armour J. and Skeel D. “Who Writes the Rules for Hostile Takeovers, and Why? The Peculiar Divergence of US and UK Takeover Regulation.” Georgetown Law Journal 95, (2007): 1727-2007.
2. Bebchuk L., Cohen A. and Ferrell A. “What Matters in Corporate Governance?” The Review of Financial Studies 22, no.2 (2009): 783-827.
3. Berglöf E., Burkart M., Boeri T. Julian Franks J. “European Takeover Regulation.” Economic Policy 18, no. 6 (2003): 171-213.
4. Cheffins B. “Mergers and the Evolution of Patterns of Corporate Ownership and Control: The British Experience.” Business History 46, (2004): 256-284.
5. Definition of Market for Corporate Control, Available at: last modified: 12 September 2023.
Directive 2004/25/EC of The European Parliament and of The Council Of 21 April 2004 on Takeover Bids (EU Takeover Directive).