Changes to the Takeover Code mean that trustees of defined-benefit pension schemes will have more involvement where listed companies are being acquired
The City Code on Takeovers and Mergers has been amended by the Takeover Panel to take account of the growing importance of defined-benefit pension schemes in a takeover situation. This will mean that, on the proposed takeover of a listed company with a pension scheme under which at least some benefits are defined benefit, the trustees must be given access to the same documents as those provided to employee representatives. These include: the announcement that commences the offer period; the offer document; the announcement of a firm intention to make an offer; any revised offer document; and the target board circular in response to any revised offer document.
Any opinion by the trustees on the effects of the offer on the pension scheme received by the target board must be announced, either by appending it to its circular on the offer or by announcement and publication on a website. It may be costly for the trustees to take this option, but trustees could certainly attack an unwelcome offer in this way…
If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.
News from Taylor Wessing
News from The Lawyer
Briefings from Taylor Wessing
For the tax year from 6 April 2014, the standard lifetime allowance has reduced from £1.5m to £1.25m.
One of the areas highlighted last year by the Regulator was the regulation of workplace DC pension schemes.
Analysis from The Lawyer
As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014.
The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world