ITALY: Lower threshold approved for Italy Takeovers

Friday July 25 2014

It has been reported that an amendment to Italian company law has been approved that will lower the ownership threshold for Italian takeover bids.

Currently under takeover law, a shareholder owning 30% of a listed company is obliged to make a full bid. The proposed change would lower the threshold to 25%, provided there is no other shareholder with a larger stake.

The proposed alteration, which would apply only to companies that have annual sales of more than 300 million euros ($404 million) or a market capitalisation above 500 million euros, will now be examined by the whole Senate.

If approved, it must then be passed by the Chamber of Deputies before becoming law. A further update will be provided with any developments.