Sweden: takeovers and equality of treatment for shareholders - ICGN position

The ICGN has published its letter to the chairman of the Näringslivets Börskommitté with regard to the latter's review of shareholder equality during takeovers. In its letter the ICGN explains its concern that shareholders facing the same level of economic risk, but with greater voting rights, can receive a higher price for their shares. The ICGN notes:

We recognise that in most takeovers of companies listed on the Stockholm Stock Exchange shareholders with the same economic rights in the company do get equal treatment. However, that this is not always the case does suggest that the rules need to be fine-tuned. Doing so should provide some confidence to shareholders, both Swedish and foreign, that their interests are protected in takeover and other acquisition situations. This is not a substitute of applying the principle of proportionality".