On Hostile Corporate Takeovers
Automatically translated summary. The full text is available in Romanian.
An analytical note from Independent Think Tank “Expert-Grup” examines the attacks of July–August 2011 on shareholdings in four Moldovan commercial banks and an insurance company. It explains the difference between lawful hostile takeovers and criminal corporate raids, and assesses how Moldovan law treats the phenomenon.
The note argues that the 2011 attacks look like “classic” corporate raids aimed at stripping legitimate shareholders of their assets. Raids are widespread in Eastern Europe, where private property is weakly protected and corruption affects regulators, courts and enforcement bodies. Typical features include careful planning, illegal data gathering, forgery and the complicity of state officials. Consequences include a worse investment climate, monopolisation, strengthened criminal elements and money laundering.
Moldovan law does not define corporate raiding, but the Criminal Code punishes offences committed at its critical stages, including blackmail, fraud, forgery, corruption and intentional insolvency. The authors suggest amendments may help, but stress that enforcement depends on the good faith and professionalism of prosecutors, judges and bailiffs, who are the weak link. Policy debate should focus less on semantics and more on stopping the phenomenon.
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