British executives support buy-out law changes

A radical rethink of the UK's foreign business sale laws is supported by more than half of Britain's top executives.

The majority of leading business people are keen to see changes in the law, to protect domestic firms and prevent similar deals to that which saw US food giant, Kraft, take over iconic British chocolate brand Cadbury's earlier this year.

The information comes from a survey carried out by boutique investment bank DC Advisory Partners. They found that executives back a so-called "Cadbury's Law", which would include increasing the minimum level of shareholder support needed to push through a deal and allowing only long-term shareholders votes on takeovers. Changes are currently being considered and consulted on by the national takeover watchdog, the Takeover Panel.

The survey – which consulted senior executives at 100 British companies with a combined annual turnover of more than £290 billion – also revealed that three quarters were anticipating a significant rise in foreign buy-outs of British firms unless the rules were changed.

Nearly two thirds believed that there should be greater weight given to long-term shareholders during the sale of a company than to short-term speculators.

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