German ruling creates new public M&A options

Author: Danielle Myles | Published: 20 Nov 2013
  • A recent judgment by Germany’s top court has removed all corporate law requirements regarding delistings;
  • Subject to the relevant listing rules, delistings can occur without shareholder approval or a purchase offer to minority shareholders;
  • The majority of sources expect this to facilitate post-offer integration in take-privates and takeovers;
  • It might also influence bidders’ tactics when the market price is, often due to compensation speculations, higher than the company’s valuation using the court-preferred process;
  • The ruling could be indicative of a shift away from the broad statutory interpretations that have, over the past decade, characterised the top court’s approach to corporate law matters.

A recent judgment by Germany’s Federal Supreme Court that makes it easier for public companies to delist is tipped to facilitate take-privates and spur...