Partner Eric Cafritz quoted, <i>International Financial Law Review</i>,

Partner Eric Cafritz quoted, International Financial Law Review, "Poison Pill May Weaken French Targets"

An article entitled "Poison Pill May Weaken French Targets" in the May 26th International Financial Law Review discusses the problematic aftereffects of the Aventis-Sanofi Synthélabo merger. As the article notes, "the government's heavy-handed tactics in pushing the merger through could have an unhealthy effect on the French mergers and acquisitions market, deterring foreign investment and leaving French companies more vulnerable to foreign raiders. Specifically they are concerned that the rejection by French securities regulator L'Authorité des Marchés Financiers (AMF) of Aventis' poison pill plan to issue warrants tied to the patent protection of one of Sanofi's best-selling drugs may sharply limit the defences French companies will be able to use to fend off future hostile takeover attempts. 'The AMF ruling could be a big step backwards for the French market,' says Eric Cafritz, a partner at the Paris office of Fried Frank Harris Shriver & Jacobson [LLP].'" He continued, "Under this decision, it seems that companies can either completely take themselves off the market, which wouldn't seem to be in the best interest of shareholders in getting the best price for their shares, or allow themselves to be ravished by a hostile bidder." Cafritz noted that he is "contemplating forming a group of French M&A lawyers to press the AMF for a clarification on the decision."

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