UK regulator proposes changes in hostile takeover bids post Cadbury

The UK Takeover Panel, in a move that follows the controversial acquisition of Cadbury by US food group Kraft in February this year, has proposed changes to reduce the tactical advantage in hostile takeover bids.

Furthermore, it announced today that it would require potential buyers to disclose information on financing and to clarify their position within a short period of time.

The Panel has called for additional disclosure about the fees of advisors such as investment bankers, accountants, lawyers and public-relations consultants in mergers and acquisitions and it also proposed strengthening the position of companies targeted for acquisition.

The body initiated a review of takeover law in the UK earlier this year after criticism of Kraft Foods purchase of the Dairy Milk maker, Cadbury.

Kraft reversed a pledge to keep open a Cadbury plant in Somerdale, England, when it decided to move the factory to Poland, according to the Takeover Panel.

The review can be read here.