Cable to remove “wriggle room” in takeover deals

Posted on 14 Jul 2014 by Callum Bentley

The rules surrounding foreign takeover of British firms are set to tighten, according to Business Secretary Vince Cable.

Speaking with the BBC, Dr Cable said any commitments made during the takeover process must have no “wriggle room.”

He wants any new regime overseeing takeovers to also include possible fines for firms which renege on promises made during the deal.

The comments come on the back of US pharmaceutical giant, Pfizer’s failed attempt at takeover of British counterpart, AstraZeneca.

He said the new rules would involve law changes, but the move was widely supported across Government.

According to the BBC, Labour’s shadow business secretary Chuka Umunna said his offer to work with Mr Cable on the issues “remains open.”