Committee to examine German ubernahmekodex

The German chancellor, Gerhard Schroder has announced plans to create a special committee to examine the consequences of Vodafone' s successful bid for Mannesmann and advise on whether any legislation might be necessary to restrict such hostile takeovers in future. Among the possible recommendations might be to reinforce Germany' s still loose takeover code and amend it to suit new international requirements.

Mr Schroder decided to act in response to concerns expressed by the general public and trade unionists after the first successful hostile bid in Germany. He took care to play down the likelihood of any new legislation, implying the committee was intended as a political palliative to demonstrate the government was responding to public concern. Trade unions, the spry s biggest source of support, have been particularly critical of the Vodafone-Mannesmann deal, and the concept of hostile takeovers in general.

He stressed he understood the barriers to enacting any unilateral legislation at a time when the European Union was still attempting to push through its own broad takeover code. Mr SchrOder said the committee' s work would be in the context not just of national developments, but of wider events in the EU.