The European Commission is to re-launch its long-trailed common EU code on takeovers and mergers in the wake of this summer's 11th hour rejection of the proposals by the European Parliament.
Brussels insiders told Legal Week that the Commission is set to relaunch the directive – which has been held up as a key measure to foster cross-border competition – as soon as the summer recess ends in September.
The expectation is that a new draft code will be drawn up within six months.
The new initiative proposes the building of a European set of guidelines for takeovers that would increase the ease of cross-border M&A and prevent companies resisting bids without first consulting shareholders.
The initial directive failed in early July after MEPs voted against a compromise solution to the long-running implementation of the directive, killing 12 years of negotiations.
If the new directive passes the
European Council of Ministers and Parliament, a replacement directive could be in place with little delay. However, it is expected that contentious elements of the directive aimed at strengthening share-holder rights will have to be watered down to gain enough support from member states and MEPs.
Baker & McKenzie EU practice head Ross Denton said that one factor in favour of a new directive was the expectation in Brussels that it would be moulded around Germany's proposals, published this July, for its own national take-over code.
The summer lobbying follows the promise by EU single market commissioner Frits Bolkestein in July to start a new directive campaign.
A spokesman for the Law Society's Brussels office said: "There is an understanding among the Council of Ministers that there will be a call for a new directive."