FRANCE - French president Nicolas Sarkozy has put forward plans for a new corporate governance code to protect French corporates against ‘destructive action' from foreign investors.
Sarkozy was quoted by French media earlier this week as saying: "With regard to the growing power of extremely aggressive speculative funds and independent pension funds who do not respect economic logic, there is no doubt that France will take action."
Following on from the recent German corporate governance code against investors ‘acting in concert', Sarkozy said in a speech on Monday in Paris he would like to give Caisse des Dépôts (CDC), France's state-owned public-interest financial institution, a new role to protect economic interests.
An official at the Élysée Palace, the residence of the French president, declined to comment further on this new role, arguing it is too early to divulge any plans.
But a person familiar with the matter has told IPE this morning: "It is not to say ‘no' to the market but it is to make sure that certain rules are put into place to prevent, for instance, certain funds from taking very destructive action towards a number of companies."
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