FRANCE: France takeover amendments to enter into force July 2014

Wednesday April 9 2014

Amendments to France takeovers have been published in the official gazette and will enter into force on 1 July 2014.

As previously reported, the amendments concern the following matters:

• Works councils – the introduction of an information-consultation in the event of a change of control.

• Acceptance thresholds – the Introduction of an automatic minimum acceptance threshold (sunset clause) of 50% for both voluntary and mandatory takeover bids.

• “Speeding” rules – lowering the mandatory bid threshold governing the accumulation of shares by shareholders holding between 30% and 50% of the share capital of a listed company. Natural or legal persons, acting alone or in concert, who directly or indirectly hold between 30% and one-half of the total number of equity securities or voting rights of a company who, within a period of less than twelve consecutive months, increase such holding by at least 1% (previously 2%) of the company`s total equity securities or voting rights shall now be required to launch a bid;

• Abandonment of the board neutrality principle during the offer period.

Click on the above link for the legislation (in French)..