The proposal was formally adopted in June of last year. The Berlin government, which has not commented publicly so far, is believed to have been heavily lobbied by German companies, which were worried that their ability to resist takeovers would be weakened. Last year's bid for Mannesmann by Vodafone was the first successful hostile takeover by a foreign company in German corporate history. Many German industrialists and trade unions alike viewed that development with alarm. Although Germany alone cannot veto the legislation, its change of heart may stiffen resistance in the European Parliament, which must also approve the code before it becomes law.
Some parliament members believe the code makes hostile bids too easy.
If the takeover directive does fall, it will likely be seen as yet another example of how the EU is unable to make good on its promises of economic reform.