The Spanish government may allow companies to change their bylaws to reinstate protection mechanisms against potential hostile bids, reports Expansion in its Wednesday Internet edition
The initiative submitted to the Senate aims to protect companies that have significantly lost their market value, following an expropriation of assets, such as is Repsol SA's (REP, REP.MC) case, from hostile bids, or from inconvenient shareholders, as is the case of Actividades de Construccion y Servicios SA (ACS.MC), which has been after a board seat in Iberdrola SA (IBE.MC) for years, the paper adds.
In the case of companies like Repsol, the shares of which have registered steep losses after the nationalization of its Argentine unit YPF SA (YPF), the measure would allow them to demand an independent auditing firm to set the sale price at a value closer to that prior to the expropriation.
In the case of companies like Iberdrola, they could reinstate voting caps, according to Expansion.
Newspaper website: www.expansion.com
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