Report on the Mandatory Bid Rule

Note: This page contains links to PDF files. For more information, see the web page on Accessing files.

Report on the Mandatory Bid Rule

June 2000

© Commonwealth of Australia 2000
ISBN 0 642 71080 5

View the report as separate downloadable parts:

Membership and Duties of the Committee (PDF 14KB)
Chapter 1 - Introduction (PDF 28KB)

Mandatory Bid Rule as proposed in the CLERP Bill
PJSC report on the MBR
The Committee’s inquiry

Chapter 2 - The mandatory bid rule (PDF 87KB)

The MBR as a policy instrument
Comparison with the UK City Code
EC Commission Directive on takeovers and position in France and Germany
Transparency of control transaction
Distressed vendor situation
Alternative proposals
Potential harm to bidders in the absence of the MBR
Improved corporate performance and price maximisation
Theoretical analysis of the MBR

Chapter 3 - Conclusions and recommendation (PDF 34KB)

Rationale for the final MBR proposals - the protection of minority shareholders
Comparisons with the UK and EC models
Distressed vendor situation
Alternative proposals
Theoretical analysis of the MBR and its implications
Mandatory bid threshold and control premium
Corporate performance, price tension and better communication

Dissenting report by Labor Members and Senators (PDF 83KB)
Minority report on the mandatory bid rule by Senator Andrew Murray (PDF 121KB)
Appendix 1 - List of submissions (PDF 9KB)
Appendix 2 - List of witnesses (PDF 9KB)

For further information, contact:

Committee Secretary
Parliamentary Joint Committee on Corporations and Financial Services
PO Box 6100
Parliament House
Canberra ACT 2600

Phone: +61 2 6277 3583
Fax: +61 2 6277 5719