The EU’s takeover directive is failing to lift barriers to cross-border takeovers, with member states taking advantage of opt-outs and even granting companies extra powers to thwart bids, a European Commission report has concluded.
The directive’s main provisions seek to restrict the means by which companies are able to defend themselves against bidders – one method is by recommending poison pill defences be subjected to shareholder approval. However, these measures are not mandatory.
Charlie McCreevy, internal market commissioner, said “The protectionist attitude of a few [member states] seems to have had a knock-on effect on others. If this trend continues, then there is a real risk that companies launching a takeover bid will face more barriers, not fewer.”
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