Is negotiation confidential and is access restricted? Are there any limits on contact with target shareholders?
There are no rules requiring that potential bids remain confidential. Companies listed on the TASE that are negotiating friendly acquisitions may be required to issue an immediate report in connection with these negotiations, unless the disclosure may jeopardise the consummation of the transaction or detrimentally influence the terms thereof (provided that the negotiations are not published in the media). There are no limitations on contact with target shareholders, except that any information provided to target shareholders with respect to a potential acquisition is likely to turn them into “insiders”, thus preventing them from trading in their shares for a certain period of time. Subject to the foregoing, often the purchaser conditions the acquisition on major target shareholders signing an undertaking to vote in favour of the proposed acquisition at the meeting of target’s shareholders convened for the purpose of approving the acquisition.
