UK Strengthens Takeover Rules To Aid Targets

Law360, New York (July 21, 2011, 4:17 PM EDT) -- The U.K.'s mergers and acquisitions watchdog on Thursday issued new, tighter rules for takeovers, including a "put up or shut up" provision for would-be purchasers and a ban on inducement fees.

The Panel on Takeovers and Mergers' updated code — adopted after a two-month public consultation — is designed to shift the advantage in the deal-making process from the purchaser to the target company in the wake of Kraft Foods Inc.’s controversial $19 billion takeover of Cadbury PLC.

The changes announced Thursday, which will take effect...
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