(1888PressRelease)
October 30, 2007 - The German cabinet has approved draft laws concerning the tightening of rules on investors acting in concert as part of an attempt to make takeover attempts more clear cut.
The decision to address the issue was taken in the wake of the ousting of Deutsche Boerse AG chief executive Werner Seifert and supervisory board head Rolf Breuer by shareholders over strategic issues in 2005.
There were concerns at the time that some of Deutsche Boerse's shareholders had breached regulations by acting in concert and not making a public takeover offer for the body.
As a result, the proposed law is set to expand on the definition of acting in concert and will, according to a government statement, contain a number of examples to provide a context to ensure that greater scrutiny can be applied in the future.
Hedge fund and private equity firms are to be particularly targeted as they play an important role in the financial markets, Forbes reports.
The government has also announced that it plans to legislate to allow for the regulation of the practice of selling securities linked with real estate assets.
Further analysis of the effect of the proposed new rules on the hedge fund and private equity markets could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
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