Mergers and Acquisitions Insights

20 December 2006

Welcome to the December edition of Clayton Utz M&A Insights.

This edition looks at process improvements in the regulation of takeovers.

For foreign investors and their advisers, recent liberalisation of the foreign takeovers rules and dollar thresholds will reduce the amount of paperwork required for run-of-the-mill acquisitions.

On the domestic front, the Federal Government has flagged a number of legislative changes that will reduce the regulatory burden on both bidders and targets - including the repeal of the phonecall taping requirements.

Foreign investment rules eased

By David Landy.

Rules for foreign investment in Australian companies have been eased. The main beneficiaries will be: trustee corporations who acquire Australian assets for clients; corporate acquisitions valued at less than $100 million; and overseas takeovers with downstream impacts in Australia.

New rules for takeovers and schemes

By Jonathan Swain.

The Government has proposed legislative changes for both takeover bids and takeover schemes. Bidders and targets will benefit from the removal of the requirement to tape phone conversations with target shareholders. In takeover schemes, the proposed amendments would reduce the opportunity to use share splitting as a spoiling tactic.

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