What is required by takeover code rule 8 in relation to dealings of voting shares in the target?

Under takeover code rule 8, there is a requirement for transparent disclosure of dealings in voting shares and any relevant securities of the target by both the bidder (predator) and the target company. This rule is designed to ensure that all stakeholders, including shareholders of the target company, have access to significant information regarding who is holding shares and the level of involvement of the bidder in the share dealings.

The main objective is to maintain a fair and equitable environment during a takeover bid, preventing any information asymmetry that could disadvantage investors. By mandating disclosure of dealings, the rule promotes transparency and helps prevent market manipulation or unfair trading practices, as shareholders need to be aware of any potential influence the bidder may have as they engage in acquiring shares.

Disclosure requirements under this rule apply regardless of the transaction size, which differentiates it from options that suggest thresholds for disclosure or that no disclosure is necessary. Ensuring that all significant dealings are disclosed serves to uphold a level playing field among all market participants during takeover contests.