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ACCA Strategic Professional · Advanced Financial Management · Regulatory framework and processes

Under the UK Takeover Code timetable for a contested offer, which statement is correct?

The bidder must post the offer document within 28 days of the firm offer announcement, and the offer must then remain open for acceptance for at least 21 days. Target board recommendation does not remove the minimum period.

  1. AThe offer document must be posted within 28 days of the firm offer announcement, and the offer must be open for at least 21 days after postingCorrect
  2. BThe offer document must be posted within 7 days of the announcement, and remain open for 60 days
  3. CThe offer need not be open for any minimum period if the board of the target recommends it
  4. DThe offer document is posted within 28 days, and the offer must stay open for at least 90 days

Explanation

After a Rule 2.7 firm announcement the bidder must post the offer document within 28 days, and the offer must be open for at least 21 days following posting. The 60-day figure is the last day for the target to publish favourable information (Day 60) in the timetable, not a minimum open period.

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