David Prosser: Is Cadbury's takeover law set to melt?
Friday 16 April 2010
Outlook Though Labour will no doubt have been happy this week to see headlines suggesting that its manifesto supports a populist new "Cadbury law" governing takeovers and mergers, what the party actually said was that it was looking forward to the Takeover Panel's report on the issue.
When that report will arrive remains to be seen, given that the panel is currently operating without a permanent leader. Robert Hingley, its last director general, is on his way to a new job at investment bank Lazard, while his replacement, Peter Kiernan, has as yet been unable to take up the post. As a result, Philip Remnant, a former director-general, has been asked to mind the shop on an interim basis. It is difficult to imagine the Takeover Panel making proposals as significant, for example, as raising the threshold needed for a positive takeover vote to two-thirds under an interim leader. Preventing short-term holders of shares – hedge funds and the like – from voting on takeovers would be even more controversial.
Even when Mr Kiernan does take up his post at last, will the Takeover Panel really throw its weight before these reforms? The new director-general will certainly bring very relevant experience to the role. He, too, is a Lazard man, having served as a senior member of its M&A team. One of Mr Kiernan's most important clients of late has been Kraft, the very US company accused of robbing Britain of its heritage with its hostile, but successful bid for Cadbury.
The measures under consideration by the Takeover Panel are not popular in the City – not least because many investors believe the threat of a takeover is a crucial weapon against underperforming companies' boards. The so-called Cadbury's Law may never see the light of day.
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 Israel's propaganda machine is finally starting to misfire
- 5 'Hello mum, this is going to be hard for you to read ...'
Sally Farmiloe dead: Howards' Way actress, and former mistress of Jeffrey Archer, dies aged 60
Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
Pope Francis issues top 10 tips for happiness – including don’t try to convert other people
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Justin Bieber posts Instagram photo of Orlando Bloom crying after Ibiza fight 'over Miranda Kerr'
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
- < Previous
- Next >
iJobs Money & Business
£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...
£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...
Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...