On January 1, 2002, the new German Takeover Act (Wertpapiererwerbs- und übernahmegesetz) came into force only five months after the project of a European Regulation for Takeovers failed because of a non-approval of the European Parliament. The new Takeover Act also substitutes the former Takeover Code of 1995 which set up certain takeover rules on a merely voluntary basis.
Under the new takeover rules, each shareholder who acquires at least 30% of the voting rights in a publicly listed stock corporation (whether by a voluntary public offer or by acquisition of shares from any shareholder) is now obligated to make a (mandatory) takeover offer for the shares of all other shareholders. In the event of a hostile takeover bid, the board of the target may, despite its obligation to act in the best interests of the shareholders and the company as a whole, provide for "measures of defence" to the extent these are approved by the supervisory board. It has to be expected that this highly
