Luxembourg, 19/06/2000 (Agence Europe) - The Council has adopted its common position on the takeovers directive. It is now up to the Parliament to give its stance in second reading, before end October. The directive will guarantee a minimum level of legal certainty for takeovers and should also ensure "an adequate level of protection for minority shareholders throughout the Union when control of a company changes", recalls the Commission in a press release. After being discussed at length, the text specifies that minority shareholders may be compensated by liquid securities of the bidding company or, when compensation does not consist of liquid securities, alternative compensation has to include some cash.
Internal Market Commissioner Frits Bolkenstein welcomes the fact that the Council has finally approved this text which has been on the table for over ten years. This is a fundamental element in the creation of a fully integrated financial services market, he states in a press release.