kw:public.logo_text

The Takeover Bids Directive: A Success Story or Occupational Accident?

10.06.2010

Piret Jesse

The Lisbon Strategy adopted by the European Council in March of 2000 aimed to make the European Union the most competitive and dynamic knowledge-based economy in the world by 2010. One important pre-condition for this goal was the integration of financial markets, which included harmonization of the rules governing takeover bids in the Member States. After nearly twenty years of complicated negotiations, Directive 2004/25/EC of the European Parliament and Council were adopted on 21 April 2004. The directive was considered as an important step in the process of integrating the EU’s financial markets and increasing economic competitiveness. The directive was transposed into Estonian law by the Securities Market Act Amendment Act, which entered into force on 19 November 2007.

In this article, the author examines whether the directive as it currently stands is capable of achieving the objectives for which it was adopted. The author analyses some of the most important provisions of the directive, including mandatory takeover bids, the right of squeeze-out and sell-out and the application and neutralization of defensive structures. The article also looks at the practice of the Member States, including Estonia, in transposing the directive.

Article was published in Juridica.

Back  |  Disclaimer