Scandinavian Working Papers in Economics
Working Papers,
Copenhagen Business School, Department of Economics
No 12-2002: The Impact of a Break-Through Rule on European Firms
Morten Bennedsen and Kasper Nielsen
Additional contact information
Morten Bennedsen: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Kasper Nielsen: University of Copenhagen, Postal: Centre for Economic and Business Research and, Centre for Applied Microeconometrics, University of Copenhagen
Abstract: We analyze the impact of a 75 pct. Break-Through rule on 1,035 European firms with dual class
shares. In 3-5 pct. of the firms the controlling owners incur a direct loss of control, whereas in
additional 11-17 pct. of the firms the controlling owners are likely to incur a control loss. Firms in
Germany, Italy and the Scandinavian countries are more likely to incur a control loss. We continue
to estimate the restrictions that the Break-Through rule puts on these firms’ ability to issue new
shares to outsiders without changing the control structure. We conclude that a significant number
of the firms with dual class shares in the European Union will be affected by a 75 pct. Break-
Through rule.
Keywords: Break-Through rule; Dual class shares; Corporate control; Takeovers and Voting rights
44 pages, October 1, 2002
Full text files
7514
- Copenhagen Business School, Department of Economics
- Ordering Working Papers
- Home page for this series
Questions (including download problems) about the papers in this series should be directed to CBS Library Research Registration Team ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2024-02-05 17:10:58.