by André Nilsen

27 years after the first proposal was tabled and fifteen years after real negotiations began, in the spring of 2004 the European Union finally enacted Directive 2004/25/EC of the European Parliament and of the Council on takeover bids. The Takeover Directive sees light after a long and acrimonious journey through the institutional labyrinth in Bruxelles.

The negotiations took so long time because the issue at the heart of the directive, whether hostile acquisitions should be encouraged or whether defences should be allowed, is a proxy for the nature of capitalism at the European level. This is a highly politicized question that divides the EU institutions and the Member States.

OCGG Economy Analysis No 1 (PDF)