There are no upper limits to the price LPC may pay to purchase common stock from Golden and the purchase price of the shares will be based on the prevailing market prices of
Golden shares at the time of each sale to LPC.
He claimed it confirmed the
golden shares were not with the club's trading arm Coventry City Football Club (Holdings) Ltd, as the club appears to claim.
The court upheld the European Commission's position: the holding of such
golden shares gives the Portuguese state exceptional rights in GALP Energia's capital and is an infringement of the principle of free movement of capital.
He said that, given EADS' role in Europe's security, the use of
golden shares would help the group - which apart from its range of Airbus airliners also makes military transport aircraft, defence electronics and telecommunications satellites - fend off a hostile takeover in the event of such a move.
The UK Government's policy to allow a free market is in sharp contrast to many European countries where a "
golden share" can be used to block a takeover.
Meanwhile, in another German-led bid battle, Spain juggled national interest and support for open markets as its prime minister said the country would not use its "
golden share" to block a move by E.ON - parent of Midlands-based Central Networks and Powergen - for Endesa.
''Under certain limited conditions, I believe firms issuing
golden shares should be allowed to remain listed,'' Sugiyama said.
According to the August 2002 issue of The Dealer's Journal, the UK government held
golden shares in 26 companies, including Eurotunnel, National Air Traffic Services and the National Grid.
News that the Government is to give up its
golden shares in National Power helped the stock.
The
golden shares' that enable the Italian state to lock up the capital of private companies in strategic sectors like telecommunications and energy are leading Rome straight to the EU Court of Justice.
The
golden shares held by the Portuguese state in Energias de Portugal (EDP) are an infringement of the free movement of capital because they might discourage investments by operators from other member states, ruled the European Court of Justice on 11 November in case C-543/08 Commission v Portugal.
The European Union has taken a critical view of
golden shares and took the Dutch to court over its special voting rights in TNT and Dutch telecoms firm KPN in 2003.
