1. THE TAKEOVERS DIRECTIVE “ALL OTHER LINES, GOOD SERVICE…” Mike Edbury Department of Trade & Industry May 2006

2. MAN ON THE CLAPHAM OMNIBUS Squeeze-out and Sell-out Wish to Own Being British Bid Documentation Football Clubs

3. THE THIRD ESTATE (PRESS) France Steel Companies Economic Patriotism Dawn Raiding Eurocratic Nightmares

4. MEMBER STATES 20 May The Detail Board Neutrality Breakthrough Reciprocity

5. THE THEORY Creates Synergies Premium to Shareholders Discipline on Management Efficient Allocation of Resources ….But Not All Takeovers Are A Good Thing

6. ACTIVITY LEVELS European Mergers and Acquisitions at an All Time High - $272 Billion in Last Year 1993-2003 Foreign Direct Investment Increased 7 Fold in EU Consumer Behaviour – Half of UK Customers have Switched Gas/Electricity Supply Since Liberalisation

7. EMPRICAL EVIDENCE Company Performance Shareholder Returns Management Employment

8. WILD CARDS European Court of Justice European Commission What is nationality? Third Countries

9. ALL OTHER LINES, GOOD SERVICE… Regulation Back in Hands of Regulators Markets Making Decisions Takeovers – Will Still Happen Review!