Are any conditions prohibited in an off-market takeover?
- Yes. The following conditions are prohibited:
- maximum acceptance conditions such as those that state an offer terminates if the number of securities for which the bidder receives acceptances exceeds a particular amount;
- conditions dependent solely on the subjective opinion of the bidder;
- conditions that financial payments or other benefits be given as compensation for loss of office be approved; or
- conditions that the bidder may only acquire specific shares instead of all the shares in a specific class.
Read some more FAQS from our Mergers & Acquisitions section