Commerzbank Case: Federal Government Considers Tightening Rules on Takeovers to Prevent Low-Ball Offers

In response to UniCredit’s actions—which involved secretly accumulating derivative stock swap rights at Commerzbank—the Ministry of Finance is considering stricter takeover rules. The details are unclear—but experts agree on what needs to change: an amendment to the mandatory offer—unique in Germany to date—that the acquiring party must make to the target company’s shareholders when the 30% ownership threshold is exceeded. In the future, a second mandatory offer could be required between 30% and 50% or at 50%, as is the practice in other countries…