Standard life rejects takeover of Tomkins
Standard Life, one of the largest investors in the UK stock market, has this week rejected a £2.9 billion takeover offer for engineering conglomerate Tomkins. While the indicated offer, from a Canadian consortium, was well above the Tomkins share price at the time there are growing fears that overseas investors are using a weakness in the UK exchange rate and a weakness in the UK stock market to "grab UK assets on the cheap".
Whether or not Standard Life can summon enough support to block the proposed takeover of Tomkins remains to be seen because at the end of the day money talks and with the UK economy forecast to take a downturn in the second half of 2010, maybe cash is king?
However, there is a growing problem with regards to overseas bidders using the weakness in sterling to grab perceived bargains in the short term. Unfortunately, this is a situation which is unlikely to change in the short to medium term and indeed with the UK economy effectively a "free market" there is little that the UK government and UK authorities can complain about. Historically we have seen UK companies using similar situations overseas to grab their own bargains so now that the tables have turned is it right for the UK authorities and UK investors to complain?
Share this..
Related stories
Is £4 Billion Enough For Barclays?
As talks appear to be nearing a close it seems that Barclays Bank may soon be announcing a fund raising of £4 billion from a select number of institutional investors. As we have covered on this site over the last few days the move is seen by many as a turning point for the group, putting finances back on a more steady footing. However, there is a growing feeling that £4 billion may not be enou...
Read MoreAre the hedge funds next to fall?
It has been suggested that while the worldwide banking system is starting to stabilise again, we may be in for further shocks in the financial industry. If predictions are correct there are a number of high profile hedge funds on the verge of going under and once the first one goes we could see a number of others taken down at the same time.
While traditionally hedge funds have bee...
UK investors shun ISA allowances
In the run-up to the end of the tax year it has been revealed that many UK investors are ignoring their ISA allowances which could see them invest £7200 tax-free for the future. For many investors the short-term potential to utilise their full capital gains tax allowance is a remote possibility never mind the apparent short-term attractions of their ISA allowance. However, in many cases there is...
Read MoreThe long-term impact of the Lloyds Banks merger with HBOS
As the UK government takes a firm step backwards with regards to the Lloyds bank and HBOS merger, despite allegations that the UK government interfered in the transaction, there appear to be long-term consequences for former directors of Lloyds bank. The first head to roll will be that of Sir Victor Blank, the outgoing chairman of Lloyds bank, who was ushered out of the door due in the main to the...
Read MoreIs the government ruining the Royal Bank of Scotland?
There are growing concerns today that government intervention with regards to Royal Bank of Scotland bonuses could see a mass resignation from the board of directors and an exodus of the company's top staff. The government has threatened to take control of the £1.5 billion bonus fund although Royal Bank of Scotland directors believe this would be a disastrous move which could weaken the position...
Read More