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Journalism of Courage
Britain’s Labour party has promised to make it more difficult for Indian and other foreign companies to take over British firms by requiring two-thirds of shareholders at the target company to approve a change of ownership,up from the current 50.1 per cent.
Releasing the manifesto,Prime Minister Gordon Brown promised a ‘national renewal’,and insisted that Labour was in ‘the future business’.
The party’s manifesto,however,came in for considerable criticism for being bereft of any new ideas,except the one making takeovers by foreign companies difficult.
In recent years,several Indian companies such as Tata and United Breweries have taken over major British companies. However,the recent takeover of Cadbury’s by American chocolate major Kraft has attracted much concern and criticism within Britain.
Besides raising the percentage of shareholders required to approve takeovers by foreign companies,the party also intends to extend a “public interest” test to let the government block potential takeovers of infrastructure and utility companies,which currently applies only to the media and national security.
The manifesto also says companies should be more transparent about long-term plans for businesses they want to acquire,that there should be more disclosure of who owns shares,a requirement for bidders to say how they will finance bids and greater transparency on advisers¿ fees.
It says there is a case for limiting votes to those on the register before the bid.
Reacting to the takeover proposals,’The Financial Times’ said,”A debate about the future of takeover rules is welcome,but pre-empting it by pledging to legislate for a two-thirds majority is populist,premature and would undermine the UKs commitment to open markets and investment”.
Prominent commentator Jonathan Freedland wrote in ‘The Guardian’,”All fine as far as it goes,but still there’s something missing. What Labour needed today was a move so bold,so surprising,it would have changed the game completely. They needed it especially urgently because they are still behind in the polls and,while the Tory lead is not as large as it should be under the circumstances,it is becoming stubborn and consistent”.
Responding to the Labour manifesto,Conservative leader David Cameron said the public was tired of the way politics had been conducted in Britain.
“They will have seen Labour’s manifesto today and I can tell you,that is not going to change anything.
There is nothing new there,there is nothing different there,” he said.
Significantly,the Conservative party’s manifesto to be released today is entitled “Invitation to join the government of Britain”.
