Senior investment bankers are divided on the future of European takeover regulation, after the collapse last week of the proposed European takeover directive after 12 years of work. They argue, however, that the blocking of the directive by the European Parliament will do little to stall the growth of cross-border M&A in Europe.

Rolf Breuer, head of Deutsche Bank, strongly criticised the move and said it was a regrettable decision by the Strasbourg parliament. 'It's a very, very sad hour in European history,' he told the European Corporate Finance Convention in Munich.