Q&A
The Code requires that: (1) the bidder is named in the announcement; and (2) a 28 day PUSU deadline is set, even if the identity of the bidder is not yet in the public domain.
- PUSU stands for ‘Put up or Shut up’ – in other words the bidder must announce a fully financed binding offer within 28 days or announce it will not be making an offer in which event it is subject to a 6 month standstill (although can make a single approach to the target to see if the target is receptive to an offer after 3 months have elapsed). Note that the Panel can relax this 28 day PUSU deadline if the target requests it to do so (which often happens) but clearly the power dynamic tilts in favour of the target.
- Sometimes a bidder can persuade the Panel that no announcement is made if it agrees voluntarily to cease active consideration of the offer, e.g. for six months.
Cautionary note: always get advice on this area and seek guidance from the Panel.
