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10:18 Apr 6, 2004
Spanish to English translations [PRO] Bus/Financial - Finance (general)
Spanish term or phrase:OPA indirecta o sobrevenida
Explanation: I can explain this, but I am not very sure how to say it in English
An "OPA sobrevenida" is one that you are required to make by order of the regulator, rather than of your own free will. For example, if Company A increases their holding in a listed company X from (say) 21% to 26%, they have crossed the magic 25% threshold and are obliged to make a tender offer for an additional percentage of the stock. However, if P, the parent company of A, acquires a controlling stake in company C (which owns 5% of X), then the regulator may consider that P effectively controls 26% of X. Accordingly, P (or A) may be obliged to make a tender offer for part or all of X (or suffer the suspension of its voting rights in X if it does not comply).
It is called "sobrevenida" because the idea is that the bidder is being forced to make the offer because of the circumstances, not because it really wanted to.
See this article (URL too long to fit in the references box): http://184.108.40.206/search?q=cache:VIG597f2hmUJ:www.expans...
Note that "tender offer" is the better term but that EU usage is "takeover", even when referring to such transactions performed not to "take over" a company (e.g. to delist).
John Rynne Local time: 14:50 Specializes in field Native speaker of: English PRO pts in category: 461