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White knights and black knights. Does the search for competitive bids always benefit the shareholders of “target” companies?

Mucciarelli, Federico

White knights and black knights. Does the search for competitive bids always benefit the shareholders of “target” companies? Thumbnail


Authors

Federico Mucciarelli



Abstract

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.

Citation

Mucciarelli, F. (2006). White knights and black knights. Does the search for competitive bids always benefit the shareholders of “target” companies?. European Company and Financial Law Review, 3(4), 408-425. https://doi.org/10.1515/ECFR.2006.018

Journal Article Type Article
Online Publication Date Jan 26, 2007
Publication Date Dec 19, 2006
Deposit Date Oct 1, 2012
Publicly Available Date Aug 7, 2019
Journal European Company and Financial Law Review
Print ISSN 1613-2548
Electronic ISSN 1613-2556
Publisher De Gruyter
Peer Reviewed Peer Reviewed
Volume 3
Issue 4
Pages 408-425
DOI https://doi.org/10.1515/ECFR.2006.018
Keywords Takeover bids; defensive measure; competing bids; white knight defense; EU takeover directive
Publisher URL http://www.degruyter.com/view/j/ecfr.2006.3.issue-4/ecfr.2006.018/ecfr.2006.018.xml?format=INT

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Copyright Statement
© 2006 Walter de Gruyter GmbH, Berlin/Boston. This is the published version of record. For information on re-use, please refer to the publisher’s terms and conditions.







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