The UK Non-Frustration Rule:Should it be Replaced with a US-inspired Approach?

• 作者: Huanyang Ma
• 来源期刊: 财经研究杂志(英文)
• 学科: 经济
• 关键词: UK Takeover Code Non-Frustration Rule “Poison Pill” Takeover Defense
• 年，卷（期）: 2020,（1）
• 页码范围: 96-101
• 页数: 6页
• 分类号: F42

摘要

Recently,Arm Holdings,the most successful semiconductor and software design company in the UK,has agreed to be sold to SoftBank,a Japanese company.This takeover case,along with the case that Cadbury was acquired by Kraft in 2010,has led to questions about the openness to foreign mergers and acquisitions.[1]The non-frustration rule plays an important role in the openness of the UK’s market for corporate control.[2]Therefore,it is time to rethink about the non-frustration rule.One of the most heated questions is whether the rule should be replaced with the US-inspired approach.This article argues that the US-inspired approach will not function as well in the UK as it does in the US.After all,the UK and the US differ a lot in corporate structures and company regulations which make the background of the non-frustration rule different in two countries.