A comparative overview of the mandatory bid rule in Belgium, France, Germany and the United Kingdom

The EU legislature"s recent decision to set a framework for company takeovers in Europe and to implement the mandatory bid rule on a European-wide level signals that the mandatory bid rule will play a central role in the future of European corporate law. With this widespread implementation still in its formative stages, the time is ripe to explore and evaluate the mandatory bid rule in its various forms and to deepen understanding of its issues and complexities in order to apply the rule more efficiently on the European stage and beyond.

This study sets forth a comprehensive analysis of the key drivers of the mandatory bid rule in four EU Member States that have implemented it (Belgium, France, Germany and the United Kingdom) and offers solutions to interpretation uncertainties and regulatory deficiencies.

The relevant concepts are introduced through an economic and historical analysis of the mandatory bid rule. The topic thus framed, the study proceeds to analyze the three core areas of concern in the field of mandatory takeovers: incurring the obligation to launch a mandatory bid, launching a mandatory bid and the price to be offered under a mandatory bid.