Lord Mandelson to discuss takeover bids with City representatives

14 January 2010

Business secretary Lord Mandelson is to meet up with a number of representatives from the City to urge them to resist hostile takeover bids.

The minister is expected to be joined by other representatives from the Department for Business, Innovation and Skills including city minister Lord Myners and trade minister Lord Davies of Abersoch, the Times reported.

Discussions are due to focus on the current takeover bid of Cadbury by Kraft, with the latter recently offering £10.5 billion for the UK-based confectionary company.

Lord Mandelson is expected to urge executives to retain a long-term outlook for businesses and to resist opportunistic bids from organisations looking to acquire companies cheaply.

In December, the politician showed his disapproval of the Cadbury takeover.

“If you think that you can come here and make a fast buck you will find that you face huge opposition from the local population,” he said.

Earlier in the week, Cadbury’s issued a statement describing Kraft’s latest takeover offer as “inadequate”.

The company cited growth of five per cent and an increase in its trading margin of 13.5 per cent as two of the main reasons for Kraft’s
offer to be bolstered.

By Jim Ottewill

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