The UK Takeover Panel today (2 June) launched a consultation into the regulations governing UK mergers and acquisitions.
A spokesperson for the regulator told just-food this morning that the move has been sparked by the controversial nature of the takeover of UK confectioner Cadbury by US food giant Kraft Foods.
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During the takeover battle, supporters of Cadbury argued that the shareholder acceptance of the deal reflected the interests of short-term speculative investors rather than long-term value for the Dairy Milk maker’s stakeholders and employees.
The spokesperson said that the consultation would address the issues of “transparency” and “longer term value” in UK takeover law.
The panel said that it is considering “a raft of options”, including amending the “put up or shut up” regime, raising the acceptance threshold for deals to be accepted and increasing the level of financial detail required from suitors.
Last week, the Takeover Panel slapped the wrist of Kraft over the company’s indication it could keep open a local Cadbury plant – only to later admit the site would close.
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