The AMF has communicated to the French Government its proposals of strengthening the legal arsenal in order to prevent creeping takeovers and to favour the medium-term and long-term shareholding. These recommendations arise in the context of the discussion organized by the Government on the ways to fight against hostile takeover bids and the bill currently being prepared on the remuneration of managers and corporate governance.

In order to control public takeover bids, the AMF suggests three main measures: the establishment of a compulsory obsolescence threshold for all the takeover bids, the reduction or suppression of the 2% threshold provided by Articles L. 433-3, I of the Monetary and Financial Code and 234-5 of the General regulation of the AMF and the maintenance of warrants in the case of a public takeover bid provided by Article L. 233-32, II, of the Commercial Code.

With a view to retaining medium-term and long-term shareholders, the AMF suggests (i) maintaining double voting rights provided by Article L. 225- 123 of the Commercial Code and (ii) increasing the maximum rate of loyalty dividends provided by Article L. 232-14 of the Commercial Code, currently capped at 10% and limited to the proportion of securities owned by the shareholder representing 0.50% of the share capital.