Mergers and acquisitions process set to be reviewed
Regulator aims to make takeovers more transparent
The Takeover Panel may change legislation regarding mergers and
acquisitions following criticism over Kraft's takeover of
The UK merger regulator has today began to review whether the
minimum threshold for a takeover should be raised from '50 per cent
Acquiring companies may also be required to provide more
information on how they plan to finance the proposed move.
Business secretary Vince Cable, who helped launch the review,
said: "We welcome foreign investors but we want all shareholders to
be empowered, the takeover process to be more transparent,
directors to think about their wider long-term legal duties, and
takeovers to be decided on the basis of long-term shareholder value
rather than short-term speculation."
Peter Mandelson, the former business secretary, criticised Kraft
for focusing on short-term gains following their £11.7 billion
acquisition of Cadburys.
Success fees are also likely to be reviewed, as many mergers and
acquisitions bankers currently receive large sums for assisting any
The Takeover Panel may choose to limit fees or may urge firms to
disclose the amount awarded.