E.C. says takeover directive used to bar deals

BRUSSELS, Belgium— The European Commission has published a report on Member States' implementation into national law of the directive on takeover bids (2004/25/EC) that concludes that the rules are too often being used to create more not less barriers to transactions.

The takeover directive allows Member States to opt out of certain key provisions and to exempt companies from those provisions if the bidder is not subject to the same obligations.

The Commission said that its report shows that in many cases member states have made use of these options and exemptions.

Internal Market and Services Commissioner Charlie McCreevy said: "Too many Member States are reluctant to lift existing barriers, and some are even giving companies yet more power to thwart bids. The protectionist attitude of a few seems to have had a knock-on effect on others. If this trend continues, then there is a real risk that companies launching a takeover bid will face more barriers, not fewer. That goes completely against the whole idea of the directive."