Hostile takeover: French Senate backs law
The measure, adopted on a second reading on Monday, aims to ensure the transparency of takeover procedures.Updated: Feb 22, 2006 12:02 IST
e French Senate has adopted a law designed to help French companies defend themselves against hostile takeover bids, but the measure will have no effect on Mittal Steel's controversial offer for European steelmaker Arcelor.
The measure, adopted on a second reading on Monday, aims to ensure the transparency of takeover procedures.
It calls for personnel at the companies involved to be adequately informed about the transaction and increases the powers of the French market regulator, the AMF.
The law in addition allows companies to issue equity warrants in the event of a hostile hid, enabling them to shore up their capital and making a takeover more expensive for the predator firm.
French Finance Minister Thierry Breton stressed that law debated in the French Senate would have no effect on the Mittal-Arcelor controversy, which involves companies registered in the Netherlands and Luxembourg rather than France.
First Published: Feb 22, 2006 05:01 IST