Notice N48/00

London Stock Exchange
3 August 2000


For the attention of the
chairman/senior partner/compliance officer,
all member firms                                                 N48/00

STOCK EXCHANGE NOTICE

CONSULTATION ON PROPOSED NEW RULES

TAKEOVERS AND STOCK SITUATIONS

DELIVERY OF UNASSENTED SHARES OR THE RESULT OF AN ELECTION

Background

1. Following a review of the Rules of the London Stock Exchange relating to
corporate actions, an addition to the current rules is proposed in order to
clarify the delivery obligations of sellers in relation to takeovers and stock
situations.  

Existing Rule

2. Under rules 10.98 and 10.99 (Takeovers) and 10.103 and 10.104 (Stock
Situations), a seller is obliged to deliver either unassented shares or the
result of an election as instructed by the buyer.  This obligation arises only
where the buyer gives notice in accordance with specific deadlines. 

Rule addition

3. It is proposed that where, as a result of the timetable of the takeover or
stock situation, it would be impossible for a buyer to comply with the notice
provisions set out within rules 10.99 and 10.104, the seller is required to
use reasonable endeavours to deliver stock as requested by the buyer.

Consultation

4. Member firms are invited to comment on the proposed new rules that are set
out in the attachment to this Notice by 31 August 2000.  


Andrew McStravick
Head of Market Regulation

Any comments or queries on this Notice should be addressed to Regulatory
Development, telephone [phone] (STX 31287) or 
Email: [e-mail].

This Stock Exchange Notice will be available on the website at
www.londonstockexchange.com/regulation/notices/