Overview

The Code Committee of the Takeover Panel has announced its intention to make some significant changes to the Takeover Code.

On 21 October, publishing its response to the consultation it launched in June this year in the wake of Kraft Food's hostile bid for Cadbury, the Code Committee set out four objectives that it intends to address through amendments to the Takeover Code, including increasing the protection for target companies against protracted 'virtual bid' periods; strengthening the position of the target company; increasing transparency and improving the quality of disclosure; and providing greater recognition of the interests of target company employees.

This briefing from UK law firm Wragge & Co outlines the key changes, and what their significance is.