Stock markets worldwide are experiencing a phenomenon.
Multinational companies are delisting from their overseas
exchanges in droves. Only the London Stock Exchange seems
Recently published Euronext data show that there has been a
big increase in secondary listed companies on Eurolist seeking
to delist from the French regulated market.
Similarly, many foreign companies secondary listed on the
New York Stock Exchange (with low average trading volumes in
the US) have initiated their delisting and announced that they
intend to deregister and terminate their reporting obligations
under the US Securities and Exchange Act 1934. Recent examples
include Imperial Chemical Industries and British Airways.
The consensus seems to be that the legal, accounting and
other costs associated with maintaining a secondary listing
overshadow the purported advantages of a secondary listing. But
the new regulatory framework applicable to EU issuers after the
implementation of the Prospectus, Market Abuse, Transparency
and Takeover Directives...