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A Legal and Economic Assessment of European Takeover Regulation

By Christophe Clerc, Fabrice Demarigny, Diego Valiante, and Mirzha de Manuel Aramendía

Taking as its point of departure the EU Directive on takeover bids, this book considers the legal and economic foundations of takeover regulation and its role in promoting economic growth and competitiveness. The authors demonstrate that European regulation in this area carries different economic effects, depending on whether the prevailing market structure in each jurisdiction is concentrated or dispersed. Their analysis reveals important trade-offs and conflicting objectives, which may induce managers to behave in line with the interests of shareholders but which also reduces the incentive to carry out long-term projects of particular value to their firms.

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