1. BSCC Legal & Tax Chapter Dinner in Zurich ("Dolder") Thursday, October 3, 2002 by Peter V. Kunz PD Dr. iur., Attorney-at-Law, LL.M. (Georgetown) Associate Professor (Privatdozent) at the University of Berne Partner at Beglinger Holenstein Attorneys-at-Law, Zurich pkunz@beghol.ch "The Role of the Swiss Regulatory Authorities in Unsolicited Takeovers"

2. *Further Context (i) "London City Code"; (ii) WpÜG; (iii) 13th EU-Guideline (in preparation) I.PRELIMINARY REMARKS * Heating-up of the "Swiss Takeover Market" (e.g. in 2001: Baumgartner Papiers, Sulzer, Altin) *Legal Framework (i) SESTA since 1997/1998; (ii) various ordinances by Goverment and FBC and STB

3. obligations of target company (article 29 SESTA), e.g.: -report by BoD (al. 1) -restrictions in "dealings" (al. 2) II. LEGAL FRAMEWORK *Concept of "Acting in Concert" (e.g. disclosures: article 20 al. III SESTA, takeover procedures: article 24 al. III SESTA) *"Ping-Pong" for Public Takeover Offers (i.e. article 22 et seq. SESTA): obligations of offeror (article 24 SESTA), e.g.: -prospectus (al. 1) -equal treatment of shareholders (al. 2)

4. II. LEGAL FRAMEWORK *Disclosure and Notification Obligations (e.g. article 20 SESTA : 5%, 10%, 20%, 33 1/3%, 50%, 66 2/3 % of the "voting rights") *Mandatory Offers (certain cases, i.e. article 32 SESTA): "triggering threshold " with 33 1/3 % (al. 1) offer to all shareholders (al. 1) "price guarantee" (al. 4) exceptions: "opting out" and "opting up"

5. III. SWISS REGULATORY AUTHORITIES A.Overview  SWX Swiss Exchange (private organization) =>Swiss Takeover Board/STB (= UEK) =>Federal Banking Commission/FBC (= EBK) ----------------------------------------------------------------- -Courts -Cantonal Commercial Registers

6. III. SWISS REGULATORY AUTHORITIES B.Swiss Takeover Board *article 23 SESTA *Zurich *"communication" with offeror and target company *recommendation  order *"appeal" to FBC possible *examples

7. III. SWISS REGULATORY AUTHORITIES C.Federal Banking Commission *article 34 et. seq. SESTA *Berne *formal proceedings, "appeal", "right to draw" *order = Federal Court in Lausanne *precedents by STB/FBC (SESTA-applicability etc.)

8. IV. CONCLUSIONS 1.Role of Regulatory Authorities = safeguarding the integrity of the takeover process, in particular, for the sake of the shareholders of the target company and for market transparency reasons 5.Neutrality: Swiss Corporate Law "favors" the target company over the offeror 2.Swiss Takeover Board: hight standard - "hands on approach", informal discussions etc. 3.Federal Banking Commission: high standard - "formal procedures only" etc. 4.Sceptisism: (i) Courts - e.g. "too slow"; (ii) Commercial Registers - e.g. hazard of the so-called "register freezing" ("Eintragungssperre")

9. Besten Dank für Ihre Aufmerksamkeit! Peter V. Kunz Beglinger Holenstein Attorneys-at-Law Utoquai 29/31, 8008 Zurich Phone:++41 (0)1 257 20 00 Telefax:++41 (0)1 251 84 09 pkunz@beghol.ch