Takeover panel looking to amend UK mergers and acquisition rules
The UK takeover panel has today revealed a consultation period in relation to UK mergers and acquisition rules. This is predominantly because of the controversial takeover of Cadbury by US outfit Kraft Foods which many believe was based upon a short-term outlook rather than long-term value for Cadbury workers and Cadbury shareholders.
The idea in relation to the consultation period is to try and arrive at a balance between longer term value and to make UK acquisitions and mergers more transparent. The problem which the authorities will have is the very fact that we operate in a free market where ultimately shareholders decide whether a takeover price is acceptable and whether to accept. To meddle in this free market economy is very dangerous although when you consider that France in particular has some very stringent regulations regarding overseas ownership of French companies, perhaps now is the time for the UK business arena to fight back.
However, one of the main attractions of the UK investment market has been the openness and the free-market policy which has been in place for decades. This has attracted some of the largest names in the investment world and any changes could impact upon the competitive nature of London as a whole.
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