Sometimes referred to as a holding announcement or a possible offer announcement. The announcement of a possible offer under Rule 2.4 of the Takeover Code ( www.practicallaw.com/0-107-7362) , either by a potential bidder that it is considering making an offer or by a target company 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 ( www.practicallaw.com/1-107-6908) must identify any potential bidder with which the target is in talks or from which an approach has been received (and not unequivocally rejected). Talks or possible offer announcements may be required by the Takeover Panel ( www.practicallaw.com/4-107-6959) under Rule 2.2 of the Takeover Code if, among other things, the target company is the subject of rumour or speculation or if there is an untoward movement in its share price.
For further information, see Practice note, Announcing the offer: Holding announcements ( www.practicallaw.com/6-107-3610) and What's Market, Public M&A deals: possible offer.