France set to expand use of fairness opinions

Author: | Published: 1 May 2005

On April 14 2005, the French securities regulator, the Autorité des marchés financiers (AMF) issued a report proposing dramatic changes to the rules governing public tender offers. The report, prepared by an advisory committee chaired by AMF commissioner Jean-Michel Naulot, is intended to strengthen minority shareholder protection and heighten the board of directors' responsibility in situations involving potential conflicts of interest. If the report's recommendations are adopted as expected, fairness opinions will be required for many categories of French securities transactions in which they are at present optional, and fairness opinions will provide much more information to shareholders concerning the valuation of the offer. ...