The simultaneous offering of shares in two or more countries raises all kinds of potential legal problems given the different regualtions and customs that often prevail iii different jurisdictions. But, so far, the lawyers and regulators have managed to reconcile these differences, enabling simultaneous international offcrings to take place smoothly.
Here are two commentaries on the subject. by lawyers who were involved ill the huge British Telecom flotation in December 1984, when the British government sold 50.2% of' the UK telephone company to investors in Britain and other countries. Readers should bear in mind that new approaches to some of the points raised may be tried if the planned British Gas offering includes an international tranche.
The US perspective Multinatioanl stock offerings - share flotations as they are called outside the US can be done in a number of ways. The more commonion is for a company in one country to sell its shares in one or more foreign markets with a single underwriting group usually organised in the foreign market or markets. Examples of this type of offering would be the sale of' ordinary shares by Cadbury Schweppes in the US in September 1984 and the sale by Alcan of shares in the US, Canada and Europe in March 1984.