Editing Takeover (section)

=== Loan note alternatives ===
Cash offers for [[Public company|public companies]] often include a "loan note alternative" that allows shareholders to take a part or all of their [[consideration]] in [[loan note]]s rather than cash. This is done primarily to make the offer more attractive in terms of [[taxation]]. A conversion of shares into cash is counted as a disposal that triggers a payment of [[capital gains tax]], whereas if the shares are converted into other [[Security (finance)|securities]], such as loan notes, the tax is rolled over.