New EU corporate takeover rules to protect minority shareholders' interests stumbled yesterday at the final hurdle - a vote in the European Parliament.
In a rare tie vote, 273 European legislators voted for the draft directive and 273 against, with 22 abstentions. Under parliament rules, the tie meant the legislation was effectively dead.
"Twelve years of work have been wasted by today's decision," said EU Internal Market Commissioner Fritz Bolkestein.
"It is tragic to see how Europe's broader interest can be frustrated by certain narrow interests," he added.
The directive would have set guidelines for corporate conduct in the event of a takeover bid, ensuring "an adequate level of protection" for minority shareholders, the European Commission said.
But the directive was opposed by those insisting on management's right to take protective steps against takeovers without first consulting shareholders, who might otherwise profit from a corporation changing hands.
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