Mucciarelli, Federico M. (2006) 'White knights and black knights. Does the search for competitive bids always benefit the shareholders of “target” companies?' European Company Financial Review, 3 (4). pp. 408-425.
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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.
|Keywords:||Takeover bids; defensive measure; competing bids; white knight defense; EU takeover directive|
|SOAS Departments & Centres:||Faculty of Law and Social Sciences > School of Finance and Management > Centre for Financial and Management Studies (CeFiMS)|
|Subjects:||K Law > K Law (General)|
|DOI (Digital Object Identifier):||10.1515/ECFR.2006.018|
|Depositing User:||Federico Mucciarelli|
|Date Deposited:||01 Oct 2012 08:51|
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