New Takeovers Panel Completes Successful First Year

The President of the Takeovers Panel, Mr Simon McKeon, said today that he was delighted with the operation of the rejuvenated Takeovers Panel in its first year.

Mr McKeon said that "We are extremely pleased with the results that the Panel has achieved since being re-launched 12 months ago on 13 March 2000. In particular, we have been encouraged by the positive feedback that the Panel has received from takeovers practitioners and market participants, and the support it has received from the Minister for Financial Services and Regulation, The Hon. Joe Hockey and the Government generally."

Mr McKeon also said "We have also benefited from a very good working relationship with the Australian Securities and Investments Commission."

Mr McKeon said that the Panel owed much of its success to its Panel members who are all part time but have made the necessary commitment, often at short notice, when required. He also singled out the Panel's small executive team headed by Nigel Morris, Director and George Durbridge, Legal Counsel. "The executive team has worked tirelessly and enabled the Panel to develop quickly into an effective dispute resolution body from what was, in effect, a standing start".

He said that he was also delighted with the announcement by the Minister of 18 new Panel members. He said that the new members, many of whom were active in the Melbourne and Sydney takeovers communities, meant that the Panel now had critical mass and was well placed to deal with the most difficult of disputes.

The Panel has reviewed 27 matters in its first twelve months and currently has three active matters. Its applications have arisen out of some of the most significant takeovers in the year, including the Smorgon bid for Email, the Rio Tinto bid for Ashton and the BHP joint venture bid for QCT.

Mr McKeon said that the Panel had learned much in its first year and would continue to seek constructive feedback from the takeovers community.

The next year will be one of consolidation for the Panel, both in integrating its new members into the existing complement and working further on improving its procedures. Furthermore, the Panel will begin to provide guidance to the market on a range of difficult issues in takeovers. The Panel is currently working on developing guidelines on the use of forecasts in takeovers, and the use of "break fees" and other lock-up devices.

Mr McKeon concluded "As we look forward to our second year, we remain committed to the Panel concept and the inherent strength of an expeditious and well structured peer review model. It's worked well thus far - we're intending to make it even better."

Nigel Morris
Director
Ph: +61 3 9655 3501 0401 14 84 26
nigel.morris@takeovers.gov.au

Simon McKeon
President
Ph: +61 3 9635 8100 0417 249 102

Corporations and Securities Panel
Level 47 Nauru House,
80 Collins Street, Melbourne
VIC 3000

Current Corporations and Securities Panel Members

* Indicates new appointment
^ Indicates reappointment