CBI backs curbs on foreign takeovers

The Confederation of British Industry (CBI) is backing plans to curb the growing number of foreign acquisitions of UK companies, it has been reported.

According to the Financial Times, the CBI said there needs to be "careful examination" of proposals which will prevent speculators from determining the outcome of bids by stopping them from voting on deals if they acquire stock during the offer period.

"The fact that we have moved from being a ‘net predator’ to a ‘net prey’ in the last few years is a concern," John Cridland, deputy director-general of the CBI, told the FT.

Reintroducing a public interest test for takeovers is not a good move, according to the CBI, as it fears the rest would prove to be protectionist.

Recently, a poll by investment bank DC Advisory Partners found that half of the top executives in the UK would support changes to be takeover rules in the country.

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