Securities and Investments Board issue new takeover rules
The Securities and Investments Board (SIB), the City regulator, issued rules which require firms to meet a higher standard for the use of derivatives in takeover situations than is required under criminal law.
The regulations follow a consultation period that began in June after Swiss Bank Corporation used derivatives to build stakes in Northern Electric when advising Trafalgar House on a takeover bid. For instance, the SIB said firms should ensure they do not buy or sell an indirect stake where, as a result of inside information, it could not properly have bought or sold a direct stake on the open market.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies