KUWAIT Law and Practice Contributed by: Ezekiel Tuma, John Cunha and Luis Cunha, ASAR – Al Ruwayeh & Partners
11. Activism 11.1 Shareholder Activism There is no significant shareholder activism in Kuwait. 11.2 Aims of Activists Activists do not appear to seek to encourage compa - nies to enter into M&A transactions. 11.3 Interference With Completion There are only a limited number of cases where shareholders have sought to stop the progress of announced transactions.
which describes certain restrictions on board powers during a takeover process. 9.5 Directors’ Ability to “Just Say No” The decision to accept a takeover offer is for the shareholders to make. The board of directors of a target company must make a recommendation to the CMA and the target’s shareholders regarding any offers (within seven working days from the date of receiving an approved bid document). This recom - mendation must be accompanied by the opinion of an independent investment consultant licensed by the CMA concerning the proposed bid. 10. Litigation 10.1 Frequency of Litigation Litigation in the field of M&A is generally rare in Kuwait. 10.2 Stage of Deal Lawsuits can occur at any time, both prior to closing and post-closing. 10.3 “Broken-Deal” Disputes It is too early to say whether there have been any lessons learned as disputes are still pending before the courts.
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