ABSTRACT

Based on the findings of Chapter 7, this chapter reviews the takeover regulation in the five countries under consideration. Two models – the US and the UK – are presented as reference. The US relies more on market forces than the UK, where takeover resistance is not allowed and a mandatory bid may be imposed in certain circumstances. The EU Takeover Directive has followed the British model, although being significantly less strict with regard to takeover defenses. This chapter argues that the US model is more consistent with the economics of friendly takeovers. Takeover activity is also higher in the US than in the rest of the world. Particularly in continental Europe, the mandatory bid undermines the smoothness of the market for corporate control.