Takeover Directive is a small step but a real political achievement after 14 years of talks

12.00.00am UTC (GMT +0000) Tue 16th Dec 2003

Commenting on the first reading approval of the Takeover Bids Directive today in the European Parliament, London Euro-MP Baroness Sarah Ludford said:

"This is a political breakthrough on a piece of legislation that has been under discussion for fourteen years and which was lost on a tied vote as recently as July 2001. By passing the same text as the Council, we will now have a takeover directive at one reading.

"This is not anyone's ideal takeover directive, but we cannot let the best be the enemy of the good. Although it will do little to create a level playing field, it will provide important protection for minority shareholders and this will encourage cross-border ownership of shares.

"It guarantees to shareholders that if a company or individual takes creeping control of their company, they will have the opportunity to sell out because a bid will become mandatory.

"Unfortunately the political basis for a level playing field on takeovers simply does not exist in Europe. In some member states - notably Germany - foreign takeovers are regarded as a disaster to be resisted while in others - like Britain - we see foreign companies as a benefit for investment and jobs. As a result, foreign investment is twice as important in Britain as in Germany. German attitudes will not change quickly although I believe they are an own goal both for Germany and the euro-area' said Baroness Ludford."