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Publishers Abstract:
After many years of discussions, the European Parliament and the Council eventually adopted Directive 2004/25 on takeover bids. The purpose of the Directive is to provide for equivalent safeguards throughout the Community for the protection of holders of securities, to be required from stock listed companies, in the context of takeover bids. The Directive has an ambitious goal: the creation of a level playing field within the Community that enables European Union (EU) companies and investors to freely establish themselves in a Member State through the acquisition of control of a listed company that is based there. The Directive however is a complex compromise creating high uncertainty as to what extent it will contribute to a level playing field in the EU for takeovers. It has been argued in this article that the participation of a white knight in a bid procedure can seriously affect the number of bids that will be made.
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