MPs demand acquisition rules debate

The draft textÿamends the draft directive drawn up by the European Commission designed to rationalise the framework for protecting shareholdersÿand make common provision over the conduct of takeover bids.

The main changes proposed would exclude shares of central banks from the scope of the directive, ensure shareholders are offered cash as an alternative to illiquid securities. They also includeÿallowing very limited scope (four years)ÿfor national regulatory authorities to allow derogations concerning the bidding prices offered to minority shareholders.

Other changes includeÿa requirement on companies to report changes in structural matters and defensive mechanisms in annual reports, rather than as they happen, for annual endorsement by shareholders and a three-month period for the exercise of squeeze-out and sell-out rights.

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