Also known as a talks announcement or holding announcement. The announcement of a possible offer under Rule 2.4 of the Takeover Code, either by a potential bidder that it is considering making an offer for a target company or by a target company confirming that it is in talks with a potential bidder, or has received an approach from a potential bidder. Any announcement by the target company which commences an offer period must identify any potential bidder with which the target is in talks or from which an approach has been received (and not unequivocally rejected). Possible offer announcements may be required by the Takeover Panel under Rule 2.2 of the Takeover Code if, among other things, the target company is the subject of rumour or speculation or there is an untoward movement in its share price.

For further information, see Practice note, Announcing the offer: Possible offer announcements and What's Market, Public M&A: possible offer.