CODEWORD

Until a recent amendment to the Takeovers Act 1993, rule 49 of the Code provided that target companies, and their directors, were entitled to recover from an offeror any expenses properly incurred in relation to an offer or takeover notice. Disputes about rule 49 reimbursements were adjudicated by the District or High Court, although were often settled out of court.

Rule 49 has now been replaced by new sections 47-53 of the Takeovers Act. Target companies, and their directors, are still entitled to recover from an offeror, any expenses properly incurred in relation to an offer or takeover notice, but the new provisions transfer to the Panel the role of primary adjudicator of reimbursement disputes. The Panel has published the new Guidance Note on Costs Recovery on the matter.