Activist investors who buy up to 10% of a company’s shares won’t need to first get U.S. antitrust approval for the purchases under a new proposal by competition regulators.
The Federal Trade Commission on Monday proposed a rule that would exempt such investments from antitrust filing requirements in certain circumstances.
Money managers had pushed the agency to make the change, which would make it easier for activist funds to build stakes in companies without first alerting management of their plans and waiting for antitrust approval to proceed.
The FTC voted 3-2 along party lines to advance the proposal and gather public comment before it becomes final.
Republican Commissioner Noah Phillips wrote in a statement that exempting reporting requirements for investments of 10% or less of a company would reduce regulatory burdens on investment activity that doesn’t harm competition.
Investors have to notify the target company, wait as long as a