Mandatory bid

A bid required to be made under Rule 9 of the City Code on Takeovers and Mergers (www.practicallaw.com/A34660), broadly where: the bidder and any persons acting in concert (www.practicallaw.com/A35770) acquire shares carrying 30% or more of the voting rights of a target; or if a bidder, together with any concert parties, holding not less than 30% but not more than 50% of the voting rights increases its holding. Rule 9 requires a mandatory offer to be made in cash (or be accompanied by a cash alternative (www.practicallaw.com/A34607)) and at the highest price paid by the bidder or any concert party (www.practicallaw.com/A34731) for any interest in shares of the relevant class during the 12 months prior to the announcement of the offer.

For further information, see Practice note, Takeover Code know-how: Rule 9 (www.practicallaw.com/5-500-6792).

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247245017452", "objName" : "Mandatory bid", "userID" : "2", "objUrl" : "http://us.practicallaw.com/cs/Satellite/us/resource/7-107-6806?source=relatedcontent", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "true", "analyticsPermCookie" : "2-32bd5319:14966e7f179:-4fca", "analyticsSessionCookie" : "2-32bd5319:14966e7f179:-4fc9", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }