COLOMBIA Law and Practice Contributed by: Jaime Trujillo and Natalia Ponce de León Baker McKenzie
Nicaragua
Panama
Venezuela
Costa Rica
Colombia Bogota
Ecuador
Brazil
Peru
Contents 1. Trends p.324
7. Disclosure p.333 7.1 Making a Bid Public p.333
1.1 M&A Market p.324 1.2 Key Trends p.324 1.3 Key Industries p.325 2. Overview of Regulatory Field p.326 2.1 Acquiring a Company p.326 2.2 Primary Regulators p.326 2.3 Restrictions on Foreign Investments p.326 2.4 Antitrust Regulations p.327 2.5 Labour Law Regulations p.327 2.6 National Security Review p.327 3. Recent Legal Developments p.327 3.1 Significant Court Decisions or Legal Developments p.327 3.2 Significant Changes to Takeover Law p.328 4. Stakebuilding p.328 4.1 Principal Stakebuilding Strategies p.328 4.2 Material Shareholding Disclosure Threshold p.328
7.2 Type of Disclosure Required p.334 7.3 Producing Financial Statements p.334 7.4 Transaction Documents p.335 8. Duties of Directors p.335 8.1 Principal Directors’ Duties p.335 8.2 Special or Ad Hoc Committees p.335 8.3 Business Judgement Rule p.335 8.4 Independent Outside Advice p.335 8.5 Conflicts of Interest p.336 9. Defensive Measures p.336 9.1 Hostile Tender Offers p.336 9.2 Directors’ Use of Defensive Measures p.336 9.3 Common Defensive Measures p.336 9.4 Directors’ Duties p.336 9.5 Directors’ Ability to “Just Say No” p.337 10. Litigation p.337 10.1 Frequency of Litigation p.337 10.2 Stage of Deal p.337 10.3 “Broken-Deal” Disputes p.337 11. Activism p.337 11.1 Shareholder Activism p.337 11.2 Aims of Activists p.337 11.3 Interference With Completion p.338
4.3 Hurdles to Stakebuilding p.329 4.4 Dealings in Derivatives p.329 4.5 Filing/Reporting Obligations p.329 4.6 Transparency p.329 5. Negotiation Phase p.330 5.1 Requirement to Disclose a Deal p.330
5.2 Market Practice on Timing p.330 5.3 Scope of Due Diligence p.330 5.4 Standstills or Exclusivity p.330 5.5 Definitive Agreements p.330 6. Structuring p.331 6.1 Length of Process for Acquisition/Sale p.331 6.2 Mandatory Offer Threshold p.331 6.3 Consideration p.331 6.4 Common Conditions for a Takeover Offer p.332 6.5 Minimum Acceptance Conditions p.332 6.6 Requirement to Obtain Financing p.332 6.7 Types of Deal Security Measures p.332 6.8 Additional Governance Rights p.333 6.9 Voting by Proxy p.333
6.10 Squeeze-Out Mechanisms p.333 6.11 Irrevocable Commitments p.333
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