Contributed By CHSH Cerha Hempel Spiegelfeld Hlawati
To increase the chances of success, a bidder can acquire an initial stake in the target company prior to launching an offer. Although pre-launch stakebuilding is generally permitted under Austrian takeover law, a shareholder is under an obligation to fulfil certain notification requirements if the thresholds described below are met or exceeded. As a consequence, stakebuilding involves the risk of generating publicity.
In 2013, the Transparency Directive Amending Directive (Directive 2013/50/EU) introduced stricter disclosure requirements, including for instance a reporting obligation regarding cash-settled equity swaps, which makes it harder to carry out a creeping increase of control over a listed company.