The Takeovers Panel has released a draft Guidance Note, and discussion paper,
seeking public discussion and comment on the approach which the Panel
proposes as to when, and in what circumstances, the use of equity
derivatives may constitute unacceptable circumstances.

The Panel proposes that for control and substantial holding
disclosure purposes, at least, long equity derivatives (cash settled or
deliverable) should be treated the same as physical holdings of the
relevant securities. The Panel’s discussion Guidance Note indicates that:
when considering whether or not unacceptable circumstances
exist, the Panel will normally treat a person’s long equity derivative
interests and voting power in listed entities in a combined manner.

Responses are due by 7 December 2007.