Gov’t threatens compulsory cooling-off periods for hostile takeovers

The government is expected to take a decision within a month over whether a cooling-off period be granted to large Dutch companies which are subject to a hostile takeover bid, the Financieele Dagblad has reported.

In announcing the move, caretaker economic affairs minister Henk Kamp was responding to demands from industrialists and many MPs. Former ING chief Jan Hommen was one of several people who brought the idea forward.

But now that Kamp has come out on the side of the board of besieged Dutch paints and coatings group AkzoNobel in its attempt to ward off US rival PPG Industries, he is no longer hesitating to add heavier weapons to his artillery.

Kamp has confirmed the cooling-off measure of between six and 18 months is being discussed by the cabinet. However he stressed that it was up to individual companies to build and maintain their own defenses.

Employers lobby group VNO-NCW has also argued for a compulsory cooling-off period.

‘We cannot be a passive witness to a move which will be to the detriment of the Netherlands,’ said group chairman Hans de Boer. He added that the playing field has been skewed by the artificially low exchange rate of the euro and US president Donald Trump’s ‘America First’ policy.