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25 October 2007

German Cabinet passes 'acting in concert' bill




The government today passed a disputed bill for more transparency of investments in the German market. The bill, which includes measures against collaborative actions against investors, so-called 'acting in concert", had been criticised by UK pension fund manager Hermes, Dutch platform for institutional investors Eumedion as well as various German investment associations as detrimental to foreign investments.

The Cabinet has accepted the proposal for the bill, made by finance minister Peer Steinbrück, aimed at "reducing the risks connected to financial investments", noted a government statement. "These regulations will bring more transparency to the capital markets and prevent undesirable developments which have occurred following the actions of a few investors," it was added.

The finance ministry stated it did not want to name any specific cases, instead adding: "Shareholders, company managers and employees as well as creditors have to be given the chance to react early to strategic planning by investors which could have an effect on the company."

This bill will now go to parliament for further discussion.



© IPE International Publishers Ltd.


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