Lexis®Library update: The Joint Working Party has broadly welcomed the proposals but has expressed some reservations regarding the changes relating to funds and consortia of funds. The Joint Working Party also suggested that the Panel provide guidance on how it would apply the new presumptions in relation to state-owned entities, joint ventures and private equity portfolio companies and the concepts of investment managers and investment advisers.
The Joint Working Party also raised concerns about the proposal that an investor in a limited partnership or an investment fund will be presumed to be acting in concert with the limited partnership or fund and suggested that the Panel should be prepared to rebut this presumption in the context of passive fund investors where the limited partners are explicitly restricted from involvement in the running of the business (or at least in circumstances where they are interested in 50% or less of the fund).
The closing date for the consultation was 23 September 2022 and the Panel is expected to publish a response statement setting out the final amendments to the Code in late 2022. For further details, see News Analysis: Takeover Panel consults on proposed changes to concert party definition.
The Joint Working Party response can be found here.
PCP 2022/2 can be found here.
Source: PCP 2022/2: Presumptions of the definition of “acting in concert” and related matters
This content was first published by LNB News / Lexis®Library, a LexisNexis® company, on 3 October 2022 and is published with permission. Further information can be found at: www.lexisnexis.co.uk.
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