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A Legal and Economic Assessment of European Takeover Regulation

Author

Listed:
  • Clerc, Christophe
  • Demarigny, Fabrice
  • Valiante, Diego
  • de Manuel, Mirzha

Abstract

Takeovers are one-off events, altering control and strategy within an organisation. But the chances of becoming the target of a bid, even where remote, daily influence corporate decision-making. Takeover rules are therefore central to company law and the balance of power among managers, shareholders and stakeholders alike. This study analyses the corporate governance drivers underpinning takeover bid regulations and assesses the implementation of the EU Directive on takeover bids and compares it with the legal framework of nine other major jurisdictions, including the US. It finds that similar rules have different effects depending on company-level and country-level characteristics and considers the use of modular legislation and optional provisions to cater for them.

Suggested Citation

  • Clerc, Christophe & Demarigny, Fabrice & Valiante, Diego & de Manuel, Mirzha, 2012. "A Legal and Economic Assessment of European Takeover Regulation," CEPS Papers 7525, Centre for European Policy Studies.
    • Handle: RePEc:eps:cepswp:7525
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    File URL: http://www.ceps.eu/system/files/Takeover%20Bids%20Directive%20book%20-%20Final.pdf
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    References listed on IDEAS

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    Cited by:

    1. Wang, Ying & Lahr, Henry, 2017. "Takeover law to protect shareholders: Increasing efficiency or merely redistributing gains?," Journal of Corporate Finance, Elsevier, vol. 43(C), pages 288-315.
    2. Isidora Tachmatzidi, 2018. "Takeover Defenses in the United Kingdom," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 105-118.
    3. Dissanaike, Gishan & Drobetz, Wolfgang & Momtaz, Paul P. & Rocholl, Jörg, 2021. "The Economics of Law Enforcement: Quasi-Experimental Evidence from Corporate Takeover Law," Journal of Corporate Finance, Elsevier, vol. 67(C).
    4. Arthur Grimes & Robert MacCulloch & Fraser McKay, 2015. "Indigenous Belief in a Just World: New Zealand M?ori and other Ethnicities Compared," Working Papers 15_14, Motu Economic and Public Policy Research.
    5. repec:ers:journl:v:vi:y:2018:i:4:p:105-118 is not listed on IDEAS

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