Elf ruling clears takeover trail

By DAILY MAIL REPORTER
Updated:

 

THE European Union's highest court has opened the way for cross-border takeovers of firms that were previously protected by a government-owned 'golden share'.

In a landmark ruling, the European Court of Justice outlawed a special share that allowed France to veto foreign bids for oil giant Elf Aquitaine. The court said golden shares restrict movement of capital and can be justified only in cases of national strategic interest.

City experts reckon this will force other countries to abandon golden shares, apart from those held in sensitive industries such as defence and nuclear power.

The British government still has shares in many firms that were privatised in the Thatcher era, such as BG, BAE Systems, Rolls-Royce, Scottish & Southern Energy and Scottish Power. It is already being taken to court over its share in airports operator BAA. Utility firms could be next.

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