IDEAS home Printed from https://ideas.repec.org/a/bla/jbfnac/v24y1997i3p375-396.html
   My bibliography  Save this article

The Equal Bid Principle: An Analysis of the Thirteenth Council Takeover Directive of the European Union

Author

Listed:
  • Clas Bergström
  • Peter Högfeldt

Abstract

This paper analyzes the economic consequences of a proposal from the EU Commission: The Amended Proposal for a Thirteenth Council Directive on Company Law, Concerning Takeover and Other General Bids (1990). By implementing the Equal Bid Principle, the Directive enforces a potential bidder to extend the same tender offer price to all shareholders. The paper demonstrates that it is likely that the effect of the Equal Bid Principle is directly opposed to the declared goal of protecting the economic interests of shareholders in the target company. Moreover, it tends towards a direction opposite to the declared goal of stimulating corporate acquisitions.

Suggested Citation

  • Clas Bergström & Peter Högfeldt, 1997. "The Equal Bid Principle: An Analysis of the Thirteenth Council Takeover Directive of the European Union," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 24(3), pages 375-396, April.
    • Handle: RePEc:bla:jbfnac:v:24:y:1997:i:3:p:375-396
    DOI: 10.1111/1468-5957.00110
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1468-5957.00110
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1468-5957.00110?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jbfnac:v:24:y:1997:i:3:p:375-396. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.