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Overview

It is always advisable to request a Proof Schedule before attempting to enter non-standard take-over details. The Proof Schedule will detail any alternative terms by way of a series of information lines and usually will display an alternative Security Code for each.

Take Over Basic Offer

For the majority of take-over's the basic offer will have been generated automatically on the original Security Code. Therefore, if your Client has accepted the basic offer then there should not be any additional work for you to undertake.

A relatively straightforward example of the type of information lines you will see on a take-over is illustrated below:-

CATER ALLEN HLDGS

A-098-061

BALANCE B/F

ORD GBP1

JUL 97

ACQUIRED BY ABBEY NATIONAL

 

JUL 97

AT 580P CASH PER SHARE

 

JUL 97

LOAN NOTE OPTION:  £1 OF LN. NTS. FOR  EVERY £1 OF  CASH

 

JUL97

(USE CODE A-028-767)

The information lines displayed above reflect what would be generated on the standard Security Code for Cater Allen Holdings Ordinary shares. CGT and Dividend Scheduling would automatically, on the appropriate date, treat the holding as acquired by Abbey National at £5.80 per share under the terms of the basic offer.

However, if your Client had elected to take the Loan Note alternative then you would need to simply substitute Security Code A-098-061 with Security Code A-028-767 within all relevant transactions.

The system would then, on the appropriate date, treat the holding as acquired by Abbey National and introduce the allotted Loan Notes as opposed to cash.

On some take-over's you may find that there will be a wide range of alternative terms to choose, although, where possible, the system will list them all as information lines and advise the alternative codes that should be used for each option.

When a Final Schedule is requested the information lines will disappear.

 

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