In June 2001, after years of wrangling and compromise and just when it appeared to be on the brink of being approved, the European takeover directive was thrown out by the European Parliament following a tied vote.
Undaunted by failure, the European Commission responded by ordering a report on issues related to takeover bids by a “high level group of company law experts”, dubbed the ‘wise men’. The wise men were asked to consider three issues, namely, how to ensure a level playing field for takeover activity across the EU; the price at which mandatory bids should be made; and compulsory acquisition, or ‘squeeze-out’, rights at the end of a bid.
