Consult with the Panel to Avoid Public Criticism and Potential Embarrassment

December 2007
Philip Broke, Ashley Ballard, Greg Stonefield, Allan Taylor

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The Hong Kong Takeovers and Mergers Panel (the "HK Panel") has issued a decision confirming that "acting in concert" is not necessarily defined by a legal agreement and emphasising that consultation with the HK Panel must take place at an early stage in order to avoid unforeseen consequences such as a mandatory offer. The UK Takeovers and Mergers Panel (the "UK Panel") is highly likely to have come to the same conclusion had the transaction happened in the UK.

As this case shows, the consequences of not consulting the relevant panel can be commercially disadvantageous for the offeror as well as embarrassing for the offeror and its advisers.