The acquirer is required to ensure that all the relevant parameters are taken in to consideration while determining the offer price and that justification for the same is disclosed in the letter of offer
The relevant parameters are:
-negotiated price under the agreement which triggered the open offer.
-price paid by the acquirer or persons acting in concert with him for acquisition, if any, including by way of allotment in a public or rights or
preferential issue during the twenty six week period prior to the date of public announcement, whichever is higher
-the average of the weekly high and low of the closing prices of the shares of the target company as quoted on the stock exchange where the shares of the company are most frequently traded during the twenty six weeks or the average of the daily high and low prices of the shares as quoted on the stock exchange where the shares of the company are most frequently traded during the two weeks preceding the date of public announcement, whichever is higher.
