Proposed changes to make hostile takeovers more difficult

A raft of changes to UK takeover rules was put forward today as part of a so-called “Cadbury Law” after the chocolate firm’s controversial takeover by US giant Kraft.

The Takeover Panel outlined proposals to make hostile takeovers more difficult, although it rejected some of the more radical calls for overhaul.

Key recommendations include ensuring companies take into account the impact of a takeover on employees and giving them greater opportunity to make their views known.

The panel also plans to restructure its “put up or shut up” regime to force companies to make a formal bid or walk away, while also introducing rules that will see all fees disclosed.

Kraft’s £11.6bn takeover of Cadbury caused a furore, in particular for its treatment of employees and its decision to shut the firm’s Somerdale factory having initially suggested it would be retained.