Regulation of takeover bids changed

On 13 July 2006 amendments to the Financial Instruments Market Law came into force. The aim of the amendments is to implement the Takeover Directive (Directive 2004/25/EC of the European Parliament and of the Council of 21 April 2004 on takeover bids). Amendments also clarify several issues that so far were not regulated or were insufficiently regulated.

The amendments substantially change existing regulation of takeover bids. So far, a mandatory takeover bid had to be made by a person that acquires, directly or indirectly, the voting rights in the amount of 50% or more of the total number of shares with the voting rights or who has voted for a decision on discontinuing the trading of the shares on the regulated market. According to the amendments, mandatory takeover bids have to be made not only by persons that individually comply with these criteria, but also by those persons that act in concert and comply with these criteria.