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Call for "Cadbury Law"
cheesy_pasty
Posts: 4,302 Forum Member
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Noticed in the SkyNews article that a call for a ban on "hostile takeovers of successful British companies by overseas multinationals." was called for dubbed the 'Cadbury Law'.
This follows Kraft's irresponsible actions over the Cadbury Somerdale factory.
My Fiancé who knows a worker at the Bourneville factory, has also mentioned how the 'Cadbury World' attraction is also under threat. Just hearsay however, but the words "it's not a playground, but a factory" were mentioned apparently.
Personally, I feel major British icons like Cadbury should be left well alone (although I know it's too late now for Cadbury). The UKs industries have been torn apart, and left in tatters. One can only hope that Cadbury doesn't go the same way, but no doubt it probably will. Should the Bournville factory come under threat, I can see a lot of uproar heading Kraft's way.
Sky News
This follows Kraft's irresponsible actions over the Cadbury Somerdale factory.
My Fiancé who knows a worker at the Bourneville factory, has also mentioned how the 'Cadbury World' attraction is also under threat. Just hearsay however, but the words "it's not a playground, but a factory" were mentioned apparently.
Personally, I feel major British icons like Cadbury should be left well alone (although I know it's too late now for Cadbury). The UKs industries have been torn apart, and left in tatters. One can only hope that Cadbury doesn't go the same way, but no doubt it probably will. Should the Bournville factory come under threat, I can see a lot of uproar heading Kraft's way.
Sky News
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Comments
No but it would encourage tit-for-tat laws in other countries in retaliation.
Also it's a bit hyprocritical to say that British companies can buy other companies abroad but not be bought themselves.
If we started bringing in laws to prevent foreign companies owning British companies then what is to stop foreign nations bring in laws the same.
Try buying a company in Japan or China and see how far you get.
Foreign companies have spent $1 trillion on acquiring 5,400 British companies in the past decade. British companies spent $750 billion for just over 6,000 companies. That's a lot of valuable Foreign Direct Investment and that's just the beginning.
This shows you know nothing abt investment in China. Caryle group has poured 2.5 billion into china alone, funding start ups, companies etc
On the basis of False promises!
thx cpu
It was recommended on the basis that the offer was now a good deal for shareholders. Directors have a duty to do this. That does not mean the takeover was wanted by the board. It was certainly unwelcome.
Hmm...actually it shows what YOU know. The biggest risk of investing in China, is that the Government there takes an active role in nationalizing anything it thinks has become a staple in Chinese life. So you spend your billions to build up a successful foreign owned enterprise, the Chinese send in a few managers and inform you they've now nationalized this company, and you can go packing.
Well let's hope that they won't be expecting a bail out by Western countries in a few years when everything goes pair shaped in China, which it inevitably will.
I agree but the point I was making was that if protecting British companies from overseas ownership did more harm in the long run to the economy as a whole then would such a law be a good thing ? Which is why I was trying to figure out how the balance lies. Also I am sure for every 'Cadbury' there is a positive story so do we assume all foreign ownership = bad ?
Would they be ok to buy unloved British brands then
I'm trying to think of a case where it is been beneficial in the long term and can't.
In that case, if there is no negatives, then sounds like a sensible idea. I was just wondering if this would start a 'tit for tat' effect with other nations that in the long run would cost us more.
It would probably be illegal to stop European Union countries from doing this, so I guess we'd have to either get the rules changed or leave the EU. The most evil companies tend to be based in the US though, so it might not be much of a problem.
No it isn't, it's corporate parasitism. These companies want the brands and patents and will then move as many jobs as they can to some third world country where they can exploit the cheap labour.