Commission welcomes Common Position on proposed take-over Directive

Nicholas O’Neill, Clifford Chance ,London and Christel Vanassche, Clifford Chance, Brussels

The EU Commission has welcomed the adoption by the EU Council of Ministers of a Common Position on the proposed Directive on take-over bids. The Directive is intended to provide legal certainty during take-overs by setting minimum standards for corporate conduct throughout the EU. One of its central aims is to ensure an adequate level of protection for minority shareholders during a change of company control. Under the co-decision procedure the Directive will now be sent to the European Parliament for a second reading, which must be completed before the end of October 2000. Harmonising the laws on take-over bids was identified in the Financial Services Action Plan and by the Lisbon Summit as being fundamental to European cross-border business.