Posts this month
A blog on financial markets and their regulation
Verizon is buying out MCI’s largest shareholder at
a higher price than what it is offering to others. Once again,
we see a big flaw in US takeover regulations. Michael Jensen
pointed out long ago that the US got its takeover regulations
badly wrong in the 1980s. I think they are yet to get it right.
All the corporate governance reforms post Enron have not touched
this area at all. Interestingly, very little of the takeover
regulation in the US comes out of the capital market regulator.
India’s takeover code has a number of deficiencies
but in this respect at least it is a lot better.