AUSTRALIA: ASIC To Propose Changes to Australia Takeover Law

Wednesday July 11 2012

It has been reported that the Australian Securities and Investments Commission (ASIC) is preparing a submission to the Treasury seeking reforms to Australia`s takeover laws, which they argue aren’t in the best interest of investors. ASIC will also be making a written submission to Government about the issues in question.

It is likely that ASIC will seek a government review of the creep provisions and clarification of the current rules in relation to mounting a Australia takeover. It has also been reported that Australia may follow the UK’s suit in adopting the ‘put up or shut up’ provisions, meaning that would-be suitors need to be very clear and committed if they are going to make a Australia takeover offer.

The Treasury will need to consider ASIC`s recommendations in detail and provide advice to the Government.

This information will be updated as more details become available.