Nearly six years after Vodafone acquired Mannesmann, the repercussions continue to reverberate around Deutschland AG. Yesterday's decision by the federal appeal court to order a retrial of six Mannesmann directors over bonuses paid to its chief executive after the takeover battle has further damaged the country's reputation as a place to do business. It also reinforces the view that Germany is a country where distrust of success and nationalist protectionism outweigh the rights of shareholders.

The facts in the Mannesmann case are simple. Vodafone succeeded in its bid only after a fierce defence by the German telecommunications giant that forced the British mobile telephone group to pay €175bn (£119bn). The share price had risen 176 per cent over the previous year and the largest shareholder proposed paying bonuses worth more than €74m to the chief executive and other managers.