Now easier and better

Author: | Published: 1 Jul 2007

Stock markets worldwide are experiencing a phenomenon. Multinational companies are delisting from their overseas exchanges in droves. Only the London Stock Exchange seems immune.

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...