Key takeaways:

• The German Federal Supreme Court issued a ruling that effectively shortens the time frame in which bidders must reach the 95% ownership threshold required in a tender offer before the bidder is allowed to “squeeze-out” minority shareholders pursuant to the special rules for a takeover squeeze-out.
• Specifically, the court ruling clarified that a bidder must acquire at least 95% of the target’s share capital no later than the end of the so-called “additional acceptance period.”
• This ruling will limit the practical relevance of the takeover squeeze-out rules further. Such rules provide for certain advantages for the bidder over other squeeze-out options under German law. Yet, the 95% threshold is rarely reached in tender offers.