As in other parts of the world, Swedish stock prices have fallen during recent years. Given that, it can be expected that sooner or later there will come a time when many Swedish companies are possible targets of takeover bids. A new Swedish Takeover Recommendation entered into force on 1 March, 2003, and will apply to public offers for the shares of Swedish companies made after that date.
Generally, the Takeover Recommendation applies to public offers for shares in companies listed on the Swedish stock exchange or authorised marketplace. The recommendation applies to all kinds of bidders; physical persons, companies and other entities, irrespective of nationality. A new item in the Takeover Recommendation is that the majority of its rules also apply to bids for foreign companies whose shares are listed in Sweden. However, the rules on mandatory bids and the content of a prospectus do not apply.
