The UK’s Takeover Code has come under scrutiny in recent months over when companies should be forced to confirm a bid. Under the code – which is policed by the Takeover Panel – companies must make a statement if news of an approach leaks and there is an ‘untoward’ movement in the share price. This responsibility rests initially with the bidder and then passes to the target once an offer has been made.
Two recent incidents, however, have raised questions about how these rules are being applied. The most recent situation involved Smith & Nephew, the UK-based manufacturer of replacement hips and other medical devices. In January this year, Sky News reported that Smith & Nephew had been approached before Christmas with a $7 bn bid from <a href="https://www.ir-impact.com/data/company/johnson-johnson/" target=
