The mandatory bid rule does not protect the shareholders in a takeover. A voluntary bid rule should be allowed Name Professor Institution Course Date Introduction The takeover bid is a transaction that often occurs for various reasons. It involves an acquiring company offering to the target company’s shareholders to buy its shares so as to gain control of the target company’s operations and businesses. Takeover bids are taken due to several reasons; some are to the advantage of the acquirer while some are to the benefit of the target company. For instance a company can decide to acquire a takeover with the aim of expanding its production scale and also to be able to produce new products increase their economies of scale make use of cheap labor and production costs in a particular country and reach out to a larger market among others. The takeover bid should also be situations in the case of the mandatory bid rule as opposed to the partial bid rule where there are just a few situations when the panel requires the acquirer to make a general offer. This is so because in the mandatory bid there are higher chances that the acquirer might not be able to compensate the target company’s shareholders sufficiently when they are not under an obligation to do so. Some acquirers even end up not compensating the minority shareholders after they purchase the required threshold. This could be a worse situation in case there could be no obligation for them to finish the compensation. There are minimal similar cases in partial bids; this is because the two parties agree to the terms with which they will coexist and therefore even without being stated in the rules the acquirer will feel obliged to meet their end of the deal. [...]
Critically discuss with reference to UK law and the European Directive on Takeover Bids (2004/25/EC) I need an essay on a postgraduate level regarding the topic above. It has to has at least 40 footnotes which will not be part of the word count and have to follow the OSCOLA system. Additional to that I need a bibliography, which is also not part of the word count. Arial font, 12 point and double spacing is required. A UK/EU focus is important, but not exclusive. The essay does not have to meet native speaking standards, though it should be carefully written and meet a reasonable vocabulary.