PRINT THIS PAGE The EU Takeover Directive26/01/2005. Source: Freshfields Bruckhaus Deringer.
Now the European Union's Takeover Directive is due to be implemented in every member state by May 2006, it's time for private equity firms to start considering how its most important provisions will impact on their operations. Especially, says Freshfields Bruckhaus Deringer, Article 9 and 11. Article 9 prohibits offeree companies from taking defensive action to frustrate bids without shareholder approval - and Article 11 allows offerors to breakthrough certain offeree company restrictions
so that they can achieve full control of the offeree company.
The full impact of the Directive on takeover rules in the EU cannot
be assessed until Member States have decided whether they will opt
out of Articles 9 and 11 and also given more thought about how they
will implement the Directive.
Member States are only just beginning to think about these issues. The picture will become clearer over the next two years before the May 2006 deadline for implementation of the Directive in national laws. However, some points can be made now.
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Freshfields Bruckhaus Deringer is a leading law firm for European private equity and venture capital. Our international private equity group provides our clients with a combination of the local insight of lawyers in our network and money-centre know-how, delivered by fully integrated international teams. We specialise in and are well known for innovative and challenging transactions. For more information about the firm please visit http://www.freshfields.com/sector/privateequity
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