The Australian Takeovers Panel and Unfair Prejudice to Third Parties

Abstract

The Takeovers Panel has played a crucial role in Australian takeover regulation since it replaced the courts' jurisdiction in the context of a takeover bid in March 2000. In the AMP Shopping Centre Trust decisions, the Panel for the first time made an order preventing third parties from exercising rights that may interfere with a takeover. Questions have been raised as to the extent to which the Panel can make such orders. This article examines this issue in the context of the requirement that the Panel's orders not unfairly prejudice any person. It is argued that the power to make orders affecting third parties is important to the Panel's ability to fulfil its role of ensuring that takeovers operate consistently with the policy underlying the takeover provisions.

Keywords: Takeovers, Takeover Panel, Takeover policy, Australia

JEL Classification: K22