Financial Tunnelling and the Mandatory Bid Rule

Jeremy Grant; Tom Kirchmaier; Jodie A. Kirshner

doi:10.1017/S156675290900233X

Financial Tunnelling and the Mandatory Bid Rule

Jeremy Grant, Tom Kirchmaier, Jodie A. Kirshner

Research output: Contribution to journal › Journal article › Research › peer-review

Abstract

In this paper, we use case studies to document how dominant shareholders have circumvented mandatory bid rules to appropriate wealth from minority shareholders. Dominant shareholders are numerous in Continental Europe. Creative compliance with mandatory bid rules reveals the failure of boards and regulators to protect minority shareholders and the difficulties of legislating in this area. We propose enhanced means for protecting their interests.

Original language	English
Journal	European Business Organization Law Review
Volume	10
Issue number	2
Pages (from-to)	233-253
ISSN	1566-7529
DOIs	https://doi.org/10.1017/S156675290900233X
Publication status	Published - 2009
Externally published	Yes

Keywords

Private Benefits of Control (PBCs)
Mandatory bid rule
Takeover
Tunnelling

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Cite this

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title = "Financial Tunnelling and the Mandatory Bid Rule",

abstract = "In this paper, we use case studies to document how dominant shareholders have circumvented mandatory bid rules to appropriate wealth from minority shareholders. Dominant shareholders are numerous in Continental Europe. Creative compliance with mandatory bid rules reveals the failure of boards and regulators to protect minority shareholders and the difficulties of legislating in this area. We propose enhanced means for protecting their interests.",

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KW - Takeover

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