The Mandatory Bid Rule: Unnecessary, Unjustifiable and Inefficient

27 Pages Posted: 30 Jan 2018 Last revised: 3 May 2018

See all articles by Jesper Lau Hansen

Jesper Lau Hansen

University of Copenhagen - Faculty of Law (FOCOFIMA)

Date Written: January 26, 2018

Abstract

This paper represents a lecture delivered at the conference, The Takeovers Directive – Ten Years On, held on 22 April 2016 by Trinity College Dublin.

The case against the mandatory bid rule in EU law is well-known by now and all the arguments have been heard before. It is an exercise usually done in vain, because the rule is safely embedded in the Takeover Directive, which is a Pandora’s box nobody wants to open and renegotiate. Most spectators are disinterested and, when pressed for an opinion, tend to offer a favourable view of it for differing reasons of self-interest. Arguing against the rule is the modern legal equivalent of tilting at windmills, except that the rule is not an imaginary evil but represents some very real problems that are characteristic of what is wrong with EU law today.

Keywords: mandatory bid rule

JEL Classification: K22

Suggested Citation

Hansen, Jesper Lau, The Mandatory Bid Rule: Unnecessary, Unjustifiable and Inefficient (January 26, 2018). Nordic & European Company Law Working Paper No. 18-01; University of Copenhagen Faculty of Law Research Paper No. 2018-54. Available at SSRN: https://ssrn.com/abstract=3112100 or http://dx.doi.org/10.2139/ssrn.3112100

Jesper Lau Hansen (Contact Author)

University of Copenhagen - Faculty of Law (FOCOFIMA) ( email )

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Studiestrade 6
Copenhagen, DK-1455
Denmark

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