Notice N52/99

LONDON STOCK EXCHANGE
25 August 1999


For the attention of the
chairman/senior partner/compliance officer,
all member firms                                                  N52/99

STOCK EXCHANGE NOTICE

Please ensure that this Notice is brought to the attention of Corporate
Finance personnel.

CONSULTATION ON PROPOSED RULE AMENDMENTS

DOMESTIC EQUITY MARKET AND AIM 
TENDER OFFERS

1. Stock Exchange rules 4.31 and 17.31 set out the procedures to be adopted by
member firms when conducting tender offers on Exchange. A tender offer is on
Exchange if the transactions resulting from the tender are effected by the
member firm, whether as agent or principal.  The rules provide for adequate
transparency of such tender offer arrangements.

2. With an increasing number of tender offers being conducted on Exchange, in
particular company buy-backs, the Exchange has taken the opportunity to update
rules 4.31 and 17.31 to reflect current practices and requirements. 

3. Due to the number of amendments, the tender offer rules have been rewritten
and re-ordered.  The Exchange proposes deleting existing rules 4.31 and 17.31
and replacing them with new rules, re-numbered as rules 4.33 to 4.36 and 17.31
to 17.34 respectively.  The proposed new rules and associated guidance are set
out in the attachment to this Notice; the revisions themselves are not shown.

4. Member firms are invited to comment on the proposed new rules; in
particular on whether proposed rules 4.34(a)(iv), 4.34(b)(iii), 17.32(a)(iv)
and 17.32(b)(iii) are appropriate.

5. Member firms are asked to provide their comments to the Exchange by
Thursday 23 September 1999.  A further Notice will be issued at the end of the
consultation period confirming the rule changes.


A E Scott-Bishop
Head of Regulatory Development

Any comments or queries on this Notice should be addressed to Jane Bezant,
Market Regulation, London Stock Exchange, London, EC2N 1HP. 
Telephone [phone] (STX 32096) or E-mail [e-mail].