[A-List] EU integration struggles: corporate takeovers

["Keaney Michael" <Michael.Keaney@xxxxxx>]

Plans on takeover code out at last
By Francesco Guerrera in Brussels
Financial Times; Oct 02, 2002

Long-awaited proposals for a single European takeover code will be
presented today after the European Commission introduced changes aimed
at defusing opposition from Germany.

The Brussels authorities delayed publication of the plans - first
reported by the FT in June - until after last month's German elections
in an attempt to win Berlin's approval.

Opposition from German business and politicians was responsible for last
year's decision by the European parliament to defeat a previous proposal
for a code to facilitate cross-borders takeovers.

The proposals to harmonise the maze of takeover rules in the European
Union's 15 member states are set to be backed by the 20 commissioners
today. However, they will have to win the approval of a majority of
European Union governments and the European parliament in the coming
months.

Despite the presence of some concessions, the plans are still expected
to be opposed by Germany's industry and government.

Under the proposals - the latest instalment in the Commission's 13-year
attempt to introduce a takeover code - companies would be allowed to
maintain restrictions on voting rights that have been imposed by law.

The provision would enable Germany to keep federal legislation that
protects the carmaker Volkswagen from hostile bids.

The plans also allow EU governments to delay by up to three years a rule
obliging companies' boards to obtain shareholders' approval to defend a
company against a bid.

Commission officials say the delay is aimed at minimising disruption in
Germany, which recently approved a law giving boards considerable
freedom in their defences against takeovers.