M&A Alert: June 2009 update
1 June 2009
In this edition we look at the recent Takeovers Panel decisions in Gloucester Coal (reverse takeovers), International All Sport (standstills) and Regis Resources (association and board control). We also consider undervalue statements by target boards and the ACCC's application of the "failing firm" argument.
- Reverse takeovers - where to from here? Gloucester Coal review Panel decision
The Gloucester Coal review Panel which gave Gloucester directors an “out” to consider alternative proposals set the stage for an epic takeover battle.
- Don't bet on the Takeovers Panel to knock over your standstill
Centrebet lost its punt that the Takeovers Panel would declare void a standstill agreement.
- Failing and Flailing Firms
The current economy punishes the inefficient competitor who is unable to run a tight ship in lean times. Opportunities for acquisition abound – the hard part is deciding when the market has bottomed, and when to make the move.
- Undervalue - a tale of two statements
A Target board’s initial response to an unsolicited takeover bid is extremely important – it must send a strong message to shareholders, particularly where there is a recommendation to reject.
- Don’t look to the panel to save the board
The Takeovers Panel’s recent decision not to commence proceedings in relation to the Regis Resources board spill is consistent with its history of not intervening in contests for board control.
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