1.   Following the share sale, it will be in an extremely strong financial position, with no borrowings.

2.   Consequently due diligence forms a larger and more important part of share sales than of asset sales and in terms of legal costs can be an expensive process.

3.   As with due diligence, the warranties in an asset sale are likely to be far shorter and hence quicker and cheaper to negotiate than in a share sale.

4.   Further, in a share sale a purchaser will also wish to negotiate a tax indemnity.

5.   The purchaser may consider that if there is a warranty claim the measure of damages will be more generous in an asset sale than in a share sale.

6.   In a share sale, unless the warranties are on an indemnity basis, the purchaser will claim for the reduction in value of the shares.

7.   It is therefore by no means certain that share sales would be quicker to complete.

8.   Therefore, it is quite possible that the actual amount of stamp duty paid may be considerably less than that on a share sale.