Regulatory provisions and corporate approval requirements

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Reference no: EM13940046

Small Bank PLC is a poorly capitalized, wholly-owned retail banking subsidiary of Barclays Bank PLC, a London Stock Exchange-listed bank. Small Bank has been approached a number of times since 2008 by larger banks, including We-Lose-Money-Deliberately [WLMD] Bank PLC, another London Stock Exchange-listed bank and the largest bank in London, about a possible merger. We-Lose-Money-Deliberately Bank PLC argues that a combination with Small Bank will create a bank big enough to compete with the "big city bankers" in the whole of the UK.

But Small Bank prizes its independence, and has always refused to enter into such discussions. Recently, Small Bank's shares have performed poorly, and some of the older directors on Small Bank's Board, owning between them just over 40% of Small Bank shares, have been grumbling and talking about possibly retiring from the Board and selling their shares.

This has made Small Bank's Chairman, Mike "Takeover" Chalkley, extremely nervous. Chalkley knows you're a Heriot Watt graduate, and one sunny day, he calls you with the question you've been waiting for: "Tell me, Analyst, how can I protect Small Bank from a hostile takeover?"

Question• What advice will you give Mike Chalkley about the takeover defence strategies that he can implement to protect Small Bank PLC? Please include in your answer a discussion of the various takeover defence mechanisms and how they are implemented. You may also use regulatory provisions and corporate approval requirements and standards as stipulated in the City Takeover Code that may figure in your defensive strategy.

Requirements

Write a two thousand five hundred (2,500) word paper in which you:

Use at least five (5) ( and as many as is possible) academic quality resources in this assignment. [Note: Wikipedia does not qualify as an academic resource].

Your assignment must follow these formatting requirements:

  • Be typed, 1.5 spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow the Universityprescribed format.
  • Include a cover page containing the title of the assignment, the Group students' names / ID numbers, the Professor's full / correct name, the course title, code, and the date submitted.

Reference no: EM13940046

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