CDA wants to curb activist shareholders

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The party wants rules and legislations to be tightened so businesses can be protected.

22 April 2008

THE NETHERLANDS - The Christian Democrat CDA - the largest of the three parties in the current government - wants to make it more difficult for activist shareholders to operate in The Netherlands.

At the moment, this kind of shareholder can put companies under pressure to sell off parts of the business, to split up the company or to put itself up for sale. The activist investor then moves his investments, taking his profits with him.

CDA party chairman Pieter van Geel has named ABN AMRO and Stork as recent examples of companies that have been affected by this practice. The CDA wants rules and legislation tightened so that shareholders would have to reveal what their intentions are.

To stop "short-term successes by men from the Cayman Islands," Van Geel wants a six-month cooling off period after takeovers and tax relief to be spread across a number of years. He also wants shareholders that invest long term in companies to be rewarded more.

[Radio Netherlands / Expatica]

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