Minority squeeze-out regulation in Germany: efficiency, fairness, and economic consequences

To facilitate delistings of stock companies after an acquisition, national legislations in Europe give firms who own a large fraction of the targets' equity capital the right to acquire the remaining outstanding shares. Squeeze-out offers has been used extensively in Germany. We provide a cost-benefit analysis of the current squeeze-out procedures in Germany, using a brand-new database of squeeze-outs with unique data, and offer new insights on this procedure taking into account both the minority investors' point of view and firms' strategies