LONDON (Reuters) - A leading advisor to pension schemes and other investors on Friday called for a review of Germany’s rules around takeovers, in light of a planned takeover of U.S. agrochemicals company Monsanto by Bayer.
Hermes EOS, part of Hermes Investment Management, said the “transformative nature” of the deal raised again the question of whether, and in what circumstances, shareholders should have the right to vote on major transactions in Germany.
Hans-Christoph Hirt, Head of Hermes EOS, said the group backed the process used in other markets, including Britain, where shareholders have to give a green light to any deal.
“This requirement forces management to make the case for a major transaction to investors and other stakeholders and as such introduces a useful discipline not least with regard to any premium paid for an acquisition,” Hirt said.
“We would therefore welcome a review of the relevant German laws and regulation in this regard.”
Reporting by Simon Jessop; editing by Maiya Keidan