Can European Companies Escape U.S. Listings?
6 Pages Posted: 25 Apr 2004
Date Written: March 2004
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: Suggested Citation