Listed Companies Required to Disclose Review Results and Grounds for Judgment of M&A Offers to Shareholders

[Economy 365]

A recommendation has been made that when a listed company receives a takeover proposal, its board of directors should be required to disclose the review results and the grounds for their judgment to shareholders.

Currently, there is no obligation to publicly disclose takeover proposals, and board opinions on tender offers are optional.

A "bear hug" is a strategy in which an acquirer offers a price significantly higher than the market price, making it difficult for the target company to refuse.

The related bill requires companies to notify shareholders of the details of the takeover proposal, review plans, and the board's judgment along with its reasons.

In separate discussions regarding a mandatory tender offer system, arguments were raised that general shareholders should also be guaranteed the same price and selling opportunities as controlling shareholders.

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