Talks announcement meaning

A short market announcement used to disclose that takeover discussions are under way or that a possible offer is being considered. Often called a holding announcement, possible offer announcement or Rule 2.4 announcement, it is made under Rule 2.4 of the UK Takeover Code either by a potential offeror (to say it is considering making an offer) or by the offeree company (to confirm it is in talks with, or has received an approach from, a potential offeror). If the offeree’s announcement commences an offer period, it must identify any potential offeror with whom it is in talks or from whom an approach has been received (and not unequivocally rejected). The Takeover panel may require such an announcement under Rule 2.2 if there is rumour or speculation about the offeree or an untoward movement in its share price. A talks announcement is not a firm intention to make an offer and should make clear there is no certainty an offer will be made. It typically triggers an offer period and, where a potential offeror is named, the Rule 2.6 “put up or shut up” deadline. Usage is consistent across England & Wales, Scotland and Northern Ireland; Ireland follows similar principles under the...