Financial Tunnelling and the Mandatory Bid Rule

Jeremy Grant, Tom Kirchmaier, Jodie A. Kirshner

Research output: Contribution to journalJournal articleResearchpeer-review


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 languageEnglish
JournalEuropean Business Organization Law Review
Issue number2
Pages (from-to)233-253
Publication statusPublished - 2009
Externally publishedYes


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

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