Archive for April, 2010
According to the proposed changes by the UK government, a new law could protect UK businesses from hostile take over bids. Companies deemed to be either of national or strategic interest would be protected through this change proposed in UK takeover rules.
Dubbed the Cadbury’s Law, if implemented, it would prevent a firm preying on a weaker company and would require a two third majority vote from the shareholders to favour the takeover, as against a simple majority at present. It would additional prevent hedge funds from voting thus requiring that those keen to sell the shares need to have held these for the longest time.
The UK Labour government intends to make these changes in an attempt to defend the interests of UK businesses.