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Most Downloaded Articles
- Board Models in Europe – Recent Developments of Internal Corporate Governance Structures in Germany, the United Kingdom, France, and Italy by Hopt, Klaus J. and Leyens, Patrick C.
- The ECB’s Controversial Securities Market Programme (SMP) and its role in relation to the modified EFSF and the future ESM by Sester, Peter
- The Effectiveness of Corporate Governance in One-Tier and Two-Tier Board Systems – Evidence from the UK and Germany – by Jungmann, Carsten
- Some Challenges Facing European Central Banks as Supervising Authority by Vletter-van Dort, Hélène M.
- The Compatibility of Corporate Exit Taxation with European Law by Biermeyer, Thomas/ Elsener, Fabio and Timba, Fiona
White Knights and Black Knights – Does the Search for Competitive Bids always Benefit the Shareholders of “Target” Companies? –
Citation Information: European Company and Financial Law Review. Volume 3, Issue 4, Pages 408–425, ISSN (Online) 1613-2556, ISSN (Print) 1613-2548, DOI: 10.1515/ECFR.2006.018, January 2007
- Published Online:
According to the EC Directive on Takeover Bids, defensive measures should be authorised by the general meeting of the target company. The incumbent board can, nonetheless, search for a competing bid, a so-called “white knight”. The rationale underpinning this exception is that competing bids always benefit target's shareholders. In this paper I will tackle this rationale, arguing that even competing bids could generate a pressure to tender on target's shareholders and, therefore, in this case should not be considered as a benefit for them.