On 5 July 2007, the European Court of Justice (ECJ) gave its decision in the case of Hans Markus Kofoed v. Skatteministeriet (C-321/05). The case concerned the interpretation of the term 'cash payment' (Art. 2(d)) under the Merger Directive (Council Directive 90/434/EEC) and the anti-avoidance clause (Art.11(1)(a)) of the latter Directive in the context of an exchange of shares transaction where such transaction is closely followed by a dividend distribution by the acquiring company. Details of the judgment are summarized below. (a) Facts.  Mr. Kofoed, a shareholder of a Danish company transferred his shares in that company to an Irish...