City anger at Labour plans for 'Cadbury's Law'
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City bosses have hit out at Labour’s plans to introduce a ’Cadbury’s Law’ restricting foreign takeovers of UK companies.
The Daily Telegraph says it has been contacted by a group of leading City figures, including fund managers, who together control 6 per cent of companies listed on the London Stock Exchange, warning that the law expected in today’s Labour manifesto could damage UK competitiveness.
The City figures warn that the law could hit the economy, industry and pension fund returns. They say the move “smacks of protectionism”.
Labour’s plans follow Kraft’s £11.4bn takeover of Cadbury and could require two-thirds of shareholders to approve such deals, rather than just a majority.
Measures to restrict the impact of hedge funds are also expected as part of the proposals.
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Readers' comments (3)
Mccormack | 12 Apr 2010 10:39 am
Absolutely it would damage competativeness and place the uk in a similar category as Japan who's weak investors and public listen to self interestEd motivated xenephobic directors.
It sounds like labour is simply going for the populistic prolatariate vote here.
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Fraser Brydon - IFA | 12 Apr 2010 11:00 am
Horse and stable door come to mind.....is there an election looming or am i being a synic....
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phil | 12 Apr 2010 11:26 am
If the 'populistic proleatariate' vote is another way of saying 'the public', which I think it might be, then I think it's entirely right that what 'the public' sees fit should be considered over and above the self-serving need (greed) of 'city bosses'.
That is want democracy was meant to achieve, after all. However, for any political party to actually do this, would be a historic first.
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