It is reported that France is preparing to push EU takeover rules to their limits again by giving companies the right to use so-called poison pill defences to rebuff hostile takeover bids. The new rules allow companies subjected to a hostile bid, or expecting a possible raid, to issue warrants convertible into shares at a discounted price to existing shareholders, making any offer more expensive and encouraging friendly talks. But by letting companies use poison pills to ward off bidders, that do not have access to similar measures, the French government seems to be going against the spirit. Mr Charlie McCreevy, the EU internal market commissioner, hit out at countries such as France and Luxembourg that are preparing to grant companies generous use of poison pill defences. EU intended any poison pill measures to be reciprocal, applying only if the bidder also had access to similar defence strategies.
