Complying with obligatory announcements in the M&A process
If a party involved in an M&A transaction in Germany, as a buyer or a seller for instance, is an issuer of exchange-traded financial instruments, it is subject to the legal requirement for the publication of obligatory announcements. Since M&A transactions entail substantial structural changes in the listed companies involved, these can have a significant impact on potential price influences. Relevant professional expertise is therefore required to prepare necessary notifications according to the Securities Trading Act. We would be happy to advise you on the preparation and timely publication of your obligatory announcements!
Carefully handling of obligatory announcements is essential
What sort of obligatory announcement has to be published in each individual case must be evaluated individually for each M&A transaction. In the case of a public takeover offers, for example, an offer document and announcements pursuant to the Securities Acquisition and Takeover Act (WpÜG) must be published on the current status of the transaction, both on the offer website as well as in the Federal Gazette. In addition, companies can issue press releases to explain a transaction’s context in more detail. In any case, careful handling of obligatory announcements is essential. The communication process for an M&A transaction should be explicitly planned and integrated into the overall project plan.
Conveying core messages in obligatory announcements
Obligatory announcements should not be viewed exclusively from the perspective of legally sound action: due to their legal definition, they are widely used by media and capital market participants as a means of disseminating information that heavily influences prices. They are thus a highly respected medium and should therefore always be understood as an influential element in positioning a company’s core messages.