Mandatory Bid
Jul 14th, 2008 | By James Green | Category: Guide to City JargonIn respect of the “City Code”, a bid required under Rule 9, basically where: the bidder and any persons acting in concert acquire shares carrying 30% or more of the voting rights of a target; or if a bidder, together with any concert parties, holding not less than 30% but not more than 50% of the voting rights increases its holding. Rule 9 requires a mandatory offer to be made in cash (or be accompanies by a cash alternative) and at the higher price paid by the bidder or any concert party over the preceding 12 months.