FBE Position Paper on Takeovers
15 February 2003
The European Banking Federation (FBE) published a position paper on the forthcoming Takeover Directive. The FBE wishes for takeover rules to be transparent, flexible and workable, particularly since public offers are inherently fast-moving and innovative, and no set of rules can really anticipate all the circumstances surrounding them.
The FBE generally favours more convergence of takeover regulation in member states and proposes among others:
the deletion of art.4, § 5b which is essential to guarantee a level playing field in practice,
the harmonisation of the amount of voting rights triggering the obligation to launch a bid by means of setting a minimum and a maximum percentage,
a more appropriate definition of the equitable price,
clear stipulation in the Directive of exemptions from the obligation to launch a bid, and
reinstatement of the obligation for member states to stipulate that, in offers of liquid securities, a money alternative must be offered.
The failure of the July 2001 proposal, mostly due to narrowly conceived national interests, condemned a crucial text and obstructed the timely implementation of the Financial Services Action Plan. At a time of poor economic growth and financial market crises worldwide, the European Banking Federation feels that the adoption of a Takeover Directive is critical to the development of the single market.
FBE Position Paper
© FBE
