The Takeover Panel published a cold shoulder ruling (PS 2019/16) in October 2019 in respect of David King, following various breaches of the Takeover Code in the context of the takeover of Rangers International Football Club. The Financial Conduct Authority (FCA) issued a statement confirming that the ruling means that no FCA-regulated firm can act for Mr King on any transaction subject to the Takeover Code for four years.
The breaches of the Takeover Code include:
- Failure to make a mandatory offer – Mr King failed to make a mandatory offer despite having acquired more than 30% of the voting rights in Rangers, as required by Rule 9 of the Takeover Code.
- Failure to consult the Panel and misleading the Panel – He failed to consult the Panel about concert party analysis and provided incorrect misleading answers to the Panel Executive during the course of their investigation.
- Cash confirmation – He failed to include a cash confirmation statement in the announcement of the mandatory offer when it was finally made.
Cold-shouldering is the most serious sanction available to the Panel and this is only the fourth time it has used the power. The ruling serves as a reminder of the importance of consulting the Takeover Panel about any interpretation of the Takeover Code and of being open and co-operative when dealing with the Panel.
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