Finance: Hostile Takeover Bids

Lord Mandelson Excerpts

Tuesday 26th April 2011 Lords Chamber

[Baroness Wilcox]

I thank my noble friend. Yes, the Secretary of State is, as I have said, now looking at the Takeover Code, corporate Britain and how it looks to the long-term focus for this country. I am absolutely sure that he will consider that at all times.

[Lord Mandelson]

My Lords, does the noble Baroness recall that it was I who first tasked the Takeover Panel to look into these matters in the wake of the Cadbury takeover? While it was never my or the Government’s intention to introduce or apply a nationality test in the case of foreign takeovers, I was conscious of the potential sensitivity and possible conflict of interest in the energy sector. What would be the Government’s attitude to a foreign bid for a UK energy utility from outside the European Union?

[Baroness Wilcox]

There were two questions there. One was about the Cadbury acquisition by Kraft, which raised wider questions, as we know, about short-termism and shareholder engagement. They are being considered as part of the reform of the Takeover Code and the Government’s call for evidence on the long-term focus for corporate Britain. Yes, I agree with the noble Lord on that. As to whether the Government would act to stop the takeover of a British energy company, I am unable to comment on any specific case. However, any proposed merger involving the supply of energy and its infrastructure would be subject to robust scrutiny and considered on its merits.