J TolbienThe long-delayed European Union (EU) common takeover code could be further watered down following fresh proposals this month to limit the code’s use by non-EU companies, corporate lawyers fear.

A proposed amendment, which has been dubbed the ‘reciprocity clause’, would allow national governments to veto bids from non-EU countries if they deem that the bidder’s home country operates a less liberal M&A policy than the common code.