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takeover regulatory devices

Sstudent0711y ago
Sir could you please explain me the Mandatory bid rule and break through rule with example.Thanks
John MoffatJohn MoffatTutor11y ago#1
If a shareholder or a concert party (group of shareholders) acquires more than 30% of a company it must offer to buy the remaining shares on terms as good as its most recent purchases. The breakthrough rule allows pre-bid defences to be removed if the potential acquirer achieves a certain percentage of the business. However most countries have opted out of this rule so I would not worry about it.
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