Debate is on on the proposed Open Offer Limit in the new Takeover code

In order to bring down the cost of acquisition, the Finance Ministry is likely to peg the open offer limit to 50-75 per cent as against 100 per cent recommended by the Sebi panel on the new Takeover Code.

“In regard to 100 per cent open offer (as recommended by Achuthan panel), more or less it would be between 50 per cent and 75 per cent,” an official said.

The Sebi panel headed by C Achuthan panel on new Takeover Code had suggested that buyers should make 100 per cent open offer, giving exit option to all the shareholders of the target company.

Current norms mandate acquirer to make an open offer of 20 per cent in the target company.

The ministry is expected to shortly finalise its view on the Takeover report.

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