Mumbai, Nov 06: Securities and Exchange Board of India is considering revision of the standard letter format for takeovers, with a view to seek additional disclosures from acquirers and protect investors interest. The corporate bodies, persons or entities seeking to acquire stake in target company should provide explanation about reasons for plans to take control of the target company, Sebi said in its draft letter of offer released for public discussion today.

In case the acquirer and target company are in similar line of business/operations, they should disclose as to how the position of the acquirer would change in terms of market positioning and capacity utilisation, Sebi said.

They should also provide details of the earlier acquisitions, if any made in the target company including acquisition made through open offers, it added.
Bureau Report