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Securities and Investments Board issue new takeover rules

Friday 13 December 1996 00:02 GMT
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The Securities and Investments Board (SIB), the City regulator, issued rules which require firms to meet a higher standard for the use of derivatives in takeover situations than is required under criminal law.

The regulations follow a consultation period that began in June after Swiss Bank Corporation used derivatives to build stakes in Northern Electric when advising Trafalgar House on a takeover bid. For instance, the SIB said firms should ensure they do not buy or sell an indirect stake where, as a result of inside information, it could not properly have bought or sold a direct stake on the open market.

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