Mandatory public bids in Belgium

Belgian legislation contains mandatory provisions that trigger the launching of public bids in well defined circumstances.

Article 41 of the Royal Decree of November 8, 1989 regulating takeover bids and changes of company control states that where exclusive or joint control of a public company is acquired other than by means of a takeover bid and where the price paid for such acquisition conferring control exceeds the market price, the buyer of the controlling interest must offer to purchase the shares of all shareholders of the target company at the same price per share as was paid to obtain control of the company.

A public bid must therefore be launched when:

-	the company at hand is a public company (this refers 
	to listed companies, companies having more than fifty 
	shareholders, companies which have bonds distributed 
	among the public,...);
	
-	one or more persons have acquired a shareholding giving 
	it or them joint or exclusive control of that company;