The Takeovers Panel is asking the market for feedback by the close of business Friday, 1 December. (file image) Photo: 123RF
The government's Takeovers Panel wants to promote competition by making it easier for parties to bid against others during active takeover offers.
The current rules-based scheme of arrangement and takeover code make it easy for parties to shut out competing bids during an active takeover offer.
Takeovers Panel general counsel Mark Cunliffe said there were a number of ways to promote competition, which might not require a change to the rules.
"It may be that the rules are okay as they are. And it's like many things in regulation - if you push too far in one area, you can have an unexpected consequence and another," Cunliffe said.
"So really, we're keen to make sure that we get the balance right."
Cunliffe said the panel could just provide guidance to the market, rather than change the law to restrict deal protection devices on schemes of arrangement and other takeover code offers.
It is asking the market for feedback by the close of business Friday, 1 December.