French govt decree on foreign takeover "bad idea"- employers

PARIS Thu May 15, 2014 7:49am EDT

PARIS May 15 (Reuters) - France's main employers' group said on Thursday that a new government decree allowing the state to block foreign takeovers of French firms was a bad idea because it sent the wrong signal to outside investors.

"It's a bad idea because it's very defensive, when what we need to be is on the offensive," Pierre Gattaz, head of the Medef employer group, said in a statement.

"Let's not be naive. Other countries also have defensive mechanisms to protect sensitive firms, but in this case it appears to be a delayed response to to a structural problem."

(Reporting by Jean-Baptiste Vey; Writing By Nicholas Vinocur; Editing by Andrew Callus)