Plans to strengthen UK takeover laws on national security grounds
should be part of a wider shake up that ‘slams the door’ on hostile
‘casino style’ takeovers which destroy British jobs and investment,
the UK’s largest union, Unite said today (Tuesday 24 July).
Responding to the government’s plans to increase the scrutiny of
foreign takeovers in industries that present national security
concerns, Unite pointed to the experience of the recent hostile
takeover of GKN. ...Request free
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Plans to strengthen UK takeover laws on national security grounds
should be part of a wider shake up that ‘slams the door’ on hostile
‘casino style’ takeovers which destroy British jobs and investment,
the UK’s largest union, Unite said today (Tuesday 24 July).
Responding to the government’s plans to increase the
scrutiny of foreign takeovers in industries that present national
security concerns, Unite pointed to the experience of the recent
hostile takeover of GKN.
Warning that government plans were likely to fall short
in curbing the short termism of the city, Unite urged minsters to
be bolder in reforming takeover laws to ensure wider
stakeholder interests, including those of the workforce and local
communities as well as the national interest, trumped the short
term interests of speculators.
Unite assistant general secretary Steve Turner
said: “The penny seems to have finally dropped on
the need for government to strengthen the UK’s takeover laws on
national security grounds. Whether ministers’ proposals go far
enough is doubtful.
“The additional powers being proposed,
while welcome, are limited to takeovers of British companies from
overseas corporations. This would not have stopped UK based
Melrose’s hostile takeover of GKN, even though it was kicked over
the line by US based hedge funds looking for a quick
profit.
“Nor will today’s proposals curtail future
UK to UK takeovers driven by short-term city speculation rather
than the need for long-term stability and
investment.
“These plans need to be a prelude to a
wider shake up of takeover laws that put long-term investment and
workers’ interests ahead of the predatory short-termism of hedge
funds and speculative capital.
“Ending the sale or transfer of voting
shares and derivatives after a hostile bid has been announced,
giving enhanced voting rights to long-term investors as well as
meaningful engagement with the workforce and its unions are minimum
protections that must be
introduced.
“Anything less will be a missed opportunity
to protect a fledgling industrial strategy by slamming the door on
‘casino style’ takeovers and stopping speculators from running riot
with British companies.”
