FCA ‘concerned’ over number of takeovers leaked to press
The UK’s financial watchdog has expressed its concern after fresh figures found nearly two in five takeovers were reported in the press before being formally announced.
The Financial Conduct Authority (FCA) warned the leaks, which can constitute a breach of market abuse rules, were triggering “price moves…caused by financial analysts or the media correctly predicting likely takeover targets.”
As many as 42 of the 110 M&A announcements made involving London-listed firms were reported on in the media prior to any official statement about the deals between April 2024 and May 2025, according to data obtained by the Financial Times under a freedom of information request.
The 38 per cent of takeover leaks in the UK appears to be higher than most other countries, with only 31 per cent of 509 global M&A deals tracked by H/Advisors Abernathy being announced prematurely.
Data from the FCA also shows that 38 per cent of UK M&A deals in 2024 saw a positive abnormal price movement in the lead up to the deal’s announcement, in a sign of insider trading. The figure is significantly higher than the five-year average of 32 per cent.
FCA warns over ‘strategic leaks’
The regulator said it had opened 33 investigations into potential market abuse since the start of 2020, amid speculation the leaks were being used strategically, for example to fend off unwanted rival bidders in a takeover deal.
In a warning to market participants in March, the FCA said: “We have seen an increase in instances where material information on live M&A transactions appears to have been deliberately leaked to the press.
“We are concerned…by strategic leaks where inside information is deliberately given to the press by individuals at an issuer or its advisers.
“These leaks can cause significant movement in share prices and trigger the improper dissemination of information, damaging the smooth operation and integrity of markets.”
Last week, Shell was forced to deny speculation that it had approached London-listed rival BP about a takeover deal following a report in the Wall Street Journal.