Unite: Takeover Panel one step towards a Cadbury's Law, but much
more needed
21 October 2010
Responding to the recommendation today that hostile takeovers of
UK companies must be made harder, Jennie Formby, Unite's national
officer for the food and drink sector, said: "The Takeover Panel is
right to call for the rules around how companies conduct themselves
during takeovers to be tightened, but it has missed an important
opportunity to protect British business and jobs.
"Kraft's behaviour during its takeover of Cadbury shocked
British manufacturing. The workers of Somerdale were led a
cruel dance, promised a future and then sacked anyway.
Cadbury went overnight from being a profitable British success
story to being just one in the stable of brands owned by a
debt-loaded multinational, while shareholders showed again that
their loyalty was to their bottom line, not to the workers who had
produced their dividends. This environment is not good for
the stability of UK business.
"Given this, Unite is disappointed that the Takeover Panel did
not make more robust recommendations. The bidding company must be
required to be totally transparent about its intentions and
finances. Shareholders should be more deeply entwined with
their companies' fortunes to stop predatory purchasing by hedge
funds only interested in a quick sale and a fast buck, and we need
to return to the point where the government can intervene in
takeovers of companies that impact on the national
interest.
"A Takeover and Mergers Commission is the best mechanism to
police hostile takeovers, so we are disappointed there was no
mention of that in the panel's report today. There is also a
major difference between workers having the right to be informed
about plans and them being properly consulted about those plans,
with rights to then negotiate guarantees around their futures.
Their trade unions also need more than the ability to circulate our
views to shareholders if we're going to be able to protect our
members.
"Today's recommendations are a start but they fall far short of
the Cadbury's Law that is urgently needed to stop the
destabilisation of British business."
ENDS
For further information, please contact Pauline Doyle on 07976
832 861
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