HL Deb 10 January 2000 vol 608 cc90-2WA
The Earl of Northesk

asked Her Majesty's Government:

Whether they believe that the European Union's proposed takeover directive will act in the best interests of the City of London in particular and of Europe-wide competition more generally.[HL287]

Lord Sainsbury of Turville

Her Majesty's Government closely consulted the Takeover Panel and other City interests when negotiating the proposed takeovers directive, and secured a number of measures in the directive sought by the panel. These measures are designed to allow the UK system of takeover supervision to remain undisturbed when the directive comes to be implemented. In addition, the directive will require our European partners to put in place rules for the supervision of takeovers which respect general principles based in large measure on the UK Takeover Code. The Government believe that the directive could play a part in the development of a single capital market in Europe which will help strengthen EU competitiveness.

The Earl of Northesk

asked Her Majesty's Government:

Whether the European Union's proposed takeover directive makes adequate competitive and commercial provision for trans-national takeovers of member states' companies. [HL289]

Lord Sainsbury of Turville

The proposed takeover directive would require member states to have in place rules governing the supervision of takeover bids for companies registered and listed in the European Union. Such rules must respect certain general principles set out in the directive, such as equivalent treatment of shareholders, and bids to be for shareholders to decide. The directive is a "framework" directive which, in accordance with the principle of subsidiarity, gives member states a measure of discretion to take account of different approaches to takeover supervision, whilst establishing common principles and minimum requirements. This will give the United Kingdom the flexibility to continue with its present system of supervision, administered by the Takeover Panel, and will also enable the panel to adapt the code as circumstances require in the future. Under the directive, trans-national takeovers—that is, takeovers where the bidder and target companies are from different countries—would be supervised in the same way as takeovers involving companies from the same country.

The Earl of Northesk

asked Her Majesty's Government:

Whether German opposition to Vodafone Air Touch's bid for Mannesmann exposes deficiencies in the European Union's proposed takeover directive, particularly with respect to European competition policy. [HL290]

Lord Sainsbury of Turville

The proposed takeover directive would require member states to have in place rules governing the supervision of takeover bids for companies registered and listed in the European Union. Such rules must respect certain general principles set out in the directive, such as equivalent treatment of shareholders, and bids to be for shareholders to decide. The directive does not deal with competition policy matters. These are dealt with at the Europen level by the merger control regulation. The merger regulation provides only limited scope for member states to intervene in takeovers with a Community dimension.

The Earl of Northesk

asked Her Majesty's Government:

Whether they are satisfied that the European Union's proposed takeover directive, in particular the prospect that a statute-based system will mean that takeover bids will be decided in the courts, will deliver appropriate levels of flexibility and speed. [HL333]

Lord Sainsbury of Turville

Her Majesty's Government closely consulted the Takeover Panel and other City interests when negotiating the proposed takeovers directive, and secured a number of measures in the directive sought by the panel. These measures are designed to allow the UK system of takeover supervision to remain undisturbed when the directive comes to be implemented, so that takeovers will continue to be kept out of the courts in the UK and the Takeover Panel will continue supervising bids with flexibility and speed as it does now.