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Chirac Seeks to Protect Cos. From Takeover
Just a little news from the business world. Kinda funny reading about France trying to protect anything from a takeover. Chirac Seeks to Protect Cos. From Takeover Wednesday July 27, 12:45 pm ET By Christine Ollivier, Associated Press Writer French President Jacques Chirac Seeks to Protect Companies From Foreign Takeover PARIS (AP) -- President Jacques Chirac called Wednesday for measures to defend French companies from foreign takeover, a week after rumors of an imminent PepsiCo bid for Paris-based Danone sparked public indignation and pledges of government intervention. Chirac asked ministers to come up with new proposals to "reinforce the protection of our strategic companies," in comments relayed to reporters by the government's official spokesman, Jean-Francois Cope. "Last week was marked by strong concern about the possible takeover of a French company by a foreign group," Chirac said while rushing to grab the nearest white flag. The Danone affair highlighted the vulnerability of many French companies and the fragmentation of their capital, he said, which "carries risks for employment and for our industrial strength." Shares in Danone SA, whose brands include Dannon yogurt and Evian water, soared last week amid rumors of an imminent bid from U.S.-based PepsiCo Inc. -- partly fueled by a series of government comments signaling readiness to oppose any takeover attempt by the maker of Pepsi-Cola, Tropicana juices and Fritos chips. The speculation calmed after France's market watchdog said PepsiCo had denied preparing a bid. But Danone shares, which closed 1.5 percent lower Wednesday at 83.15 euros ($99.70), remain about 14 percent higher than at the start of the month, when the takeover rumors began to fly. While blanket opposition to all foreign takeovers was "out of the question," Chirac said, the government should "examine whether changes are needed in company law or accounting standards in order to encourage long-term investment." He also called for "mobilization" among banks, investment and pension funds, mutual funds and insurers to encourage more stable, long-term investment in French companies and greater participation by employees. Posted by: intrinsicpilot 2005-07-27 |
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