Can European Companies Escape U.S. Listings?

6 Pages Posted: 25 Apr 2004  

Robert Pozen

Massachusetts Institute of Technology, Sloan School of Management, Students; Brookings Institution

Date Written: March 2004

Abstract

European companies would like to deregister from the SEC system in light of Sarbanes Oxley. However, this takes at least 18 months for a foreign company listed on a US market, and is virtually impossible for a foreign company that has made a public offering in the US. Therefore, the SEC should adopt a geographic going private rule allowing a foreign issuer to opt out of the SEC system if the foreign issuer makes an offer to buy all shares of its US holders at a fair price as determined by an independent appraiser.

Keywords: Sarbanes Oxley, SOX, securities regulation

JEL Classification: F21, G15, G38

Suggested Citation

Pozen, Robert, Can European Companies Escape U.S. Listings? (March 2004). Harvard Law and Economics Discussion Paper No. 464. Available at SSRN: https://ssrn.com/abstract=511942 or http://dx.doi.org/10.2139/ssrn.511942

Robert Pozen (Contact Author)

Massachusetts Institute of Technology, Sloan School of Management, Students ( email )

Cambridge, MA 02139
United States

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

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