Schaeffler technique allowed to continue

Author: Nicholas Pettifer | Published: 21 Aug 2008

German shareholder groups are in uproar over Schaeffler's use of cash swaps in its offer for Continental. But calls for regulation are falling on deaf ears because effective rules would prove difficult to create.

"The problem with [regulation of cash-settled derivatives] is where do you draw the line? You cannot outlaw cash-settled derivatives. And if you ban them in the six months...