The Takeovers Bids Directive has a long and chequered history.
First proposed in 1989, the Directive took 14 years of rejection,
amendment and negotiation before a compromise draft was finally
agreed last year between the European Parliament and the Council of
Ministers.
It sets minimum standards on the regulation of takeovers of
companies that are registered in a Member State and admitted to
trading on a regulated market within within the EU and EEA (i.e.
the 25 countries comprising the EU together with Iceland,
Liechtenstein and Norway).
The proposals put forward by the DTI seek to strengthen the
existing UK regulator, The Takeover Panel, rather than create a new
takeover regime. This means that the Panel will be given powers to
make statutory rules.
The Panel is at present identifying changes that will have to be
made to the UK's Takeover Code and has set these out in general
terms in an Explanatory Paper. The Panel will later publish another
paper setting out the detailed changes to the Code required as a
result of the Directive and the proposed implementing
legislation.
"The consultative document reflects the Government's view that
our existing system of takeover regulation overseen by the Takeover
Panel has many strengths and enjoys the confidence of busines,"
said Trade and Industry Secretary Patricia Hewitt.
"In order to minimise disruption to the current regime, the
Government has therefore concluded that the Panel should retain
responsibility for takeover regulation and that a central objective
in implementing the Directive should be to build on the strengths
of the existing system," she added.
The consultation will remain open until 15th April. The
Directive must be implemented by 20th May 2006.
