Cocoa Board announces opening of light cocoa
purchasing season
European court bars protectionist 'golden share'
Cocoa Board announces opening of light cocoa
purchasing season
Accra (Greater Accra) 06 Junes 2002- The Ghana Cocoa Board on Wednesday announced that purchases of the 2002 light crop cocoa season would begin on Friday 07 June.
A statement signed by the Board's Chief Executive, Mr Kwame Sarpong said; "the producer price to be paid at all buying centres should be 186,000cedis per load of 30 kilograms for grade one and two cocoa beans naked ex-scale or 387, 500 cedis per bag of 64 kilograms gross." A tonne of 16 bags would sell at 6.2 million cedis, the statement said.
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London (United Kingdom) 05 June 2002 – Europe’s highest court yesterday inflicted a blow against attempts by European Union member states to retain control of privatised industries when it outlawed the French Government's so-called "golden share" in TotalFinaElf, the oil conglomerate.
The landmark ruling by the European Court of Justice casts doubt on the legality of similar arrangements across Europe and could exert a big influence on a pending legal case against the British Government over its retention of a golden share in BAA, the airports operator.
The decision may ultimately make cross-border mergers and acquisitions much easier, because it gives a boost to the
European Commission's planned takeover directive. The directive proposes that a bidder acquiring 75 per cent or more of a company should be able to override mechanisms aimed at frustrating a full takeover.
The European court, which also issued judgments on cases involving Portugal and Belgium, ruled that golden shares were a barrier to the "principle of free movement of capital" and could be justified only in cases of legitimate national strategic interest, such as in defence, or of more general interest, provided any restrictions are proportionate.
In the French case the court found against rules dating back to 1993, requiring the French Minister for Economic Affairs to approve in advance any acquisition of shares in Elf-Aquitaine above established limits. This veto was retained after Elf's merger with TotalFina. The court said that although France's objective of guaranteeing supplies of petroleum products in the event of a crisis was legitimate, the measures taken "clearly go beyond what is necessary in order to attain the objective indicated". The court said that it was "unable to accept . . . such a wide discretionary power".
Francis Mer, the French Finance Minister, said the French Government had "no choice" but to comply with the ruling. He said that because Elf was now part of the bigger TotalFina Elf group, it had "the means to take care of its own future''. He added: "As a result, the issue is longer dangerous for us.''
The court also vetoed Portugual's regulations banning foreign companies from buying more than 10 per cent of privatised banking, insurance, energy and transport companies without prior authorisation from the Minister of Finance. It ruled that Portugal's argument that the rule was needed to safeguard its financial interests "can never serve as justification for restrictions on freedom of movement".
However, the court ruled that the Belgian Government's golden shares in Belgium's gas and canal companies were legitimate because the measures prescribed - to protect gas supplies in the event of a crisis - were proportionate and subject to a fair legal process for challenges.
A spokesperson for BAA, in which the Department of Trade and Industry has held a golden share since 1987, said that it would be for the Government to decide whether to defend its right in the European Court. The DTI has previously renounced golden shares in a number of companies, including BT, Cable & Wireless, Powergen and National Power.
Yesterday's rulings may also have a bearing in a forthcoming case involving the Spanish Government's golden share in Telefónica. They could also threaten a German law that gives the State of Lower Saxony effective control of Volkswagen, the car manufacturer, although the European Commission conceded yesterday that it was "not, strictly speaking, a golden share".
Vincent Brophy, an associate in Linklaters & Alliance in Brussels, said: "In all EU countries, governments will now have to review golden share schemes to make sure they comply with the provisions of the judgment. In practical terms, certain companies will be much more vulnerable than they have been in the past." - The Times.
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