To: Bucky Katt who wrote (13688 ) 10/19/1999 6:27:00 PM From: Rande Is Read Replies (1) | Respond to of 57584
SEC Revises Rules For Mergers Tuesday October 19 12:17 PM ET WASHINGTON (Reuters) - The Securities and Exchange Commission Tuesday revised rules governing mergers and acquisitions to benefit small investors and U.S. shareholders in foreign companies. The new rules, which focus on takeovers and shareholder communications, overseas tender and exchange offers and rights offerings, ''are an attempt to modernize and bring up to date the rules and regulations regarding mergers and acquisitions,'' said Brian Lane, head of the SEC's corporation finance unit. One major area affected by the changed rules is the communication that companies engaged in tender offers, mergers and similar business combination deals can have with investors. In the same way that initial public offerings have ''quiet periods,'' so do merger and acquisition transactions. When a deal is announced, current regulatory laws force companies to remain silent until a formal document is filed with the SEC, agency officials explained. Now, under the amended rule, once a deal is announced companies will be mandated to file the same documents that analysts and other Wall Street insiders get. The filings will be posted for all to see on the SEC's massive EDGAR database, Lane said. Companies had been frustrated because they wanted to get the message of the deal out but felt that the regulations in place prohibited them from doing that, Lane added. The SEC also moved to balance the way it treats cash and stock tender offers. The former can begin as soon as a tender offer schedule is filed with the agency and the information is passed on to security holders. MORE: dailynews.yahoo.com A SPECIAL AWARD GOES TO MULTEX FOR BEING ON THE BALL. . . .CHECK THIS OUT:Multex.Com Secures Patent For Real-Time SEC Compliance Technologies Research Providers and Individual Investors are Automatically Protectedbiz.yahoo.com Rande Is