THE Institute of Directors (IoD) has slammed the idea of a public interest test for takeovers which is being considered by the Takeover Panel.
The IoD instead argued in favour of a requirement that all bids for major UK-listed companies should be conditional on achieving the support of the shareholders of the acquiring company, regardless of its domicile.
The Takeover Panel’s review into the takeover process in light of the controversial acquisition of Cadbury by US firm Kraft closed last night.
Miles Templeman, director general of the IoD, said: “The Takeover Code must continue to support the UK as a leading destination for foreign investment and as a leading location for corporate HQs and operations.
“It would be undesirable for takeover policy to be perceived as a pretext for protectionism, as part of an industrial strategy, or as the outcome of a political lobbying process.
“For these reasons, we are opposed to a new public interest test for takeovers.”
The IoD also said it opposes raising the acceptance threshold for a takeover offer as a way of protecting the long-term interests of the firm and its shareholders.