Takeover rules must change to prevent damaging free-for-all: Vince Cable

3.14.00pm BST (GMT +0100) Sat 10th Apr 2010

Commenting on reports that Labour’s election manifesto will include plans to restrict takeovers of British firms on public interest grounds, Vince Cable said:

“The Liberal Democrats have been proposing a public interest test for some time.

“It shouldn’t be nationalistic. The issue is not whether there is a foreign bidder, it’s about whether it’s in the interests of the British economy.

“The Government removed this provision in 2002 and we’re now seeing the damage done by opening up a complete free-for-all.

“We need to protect firms from takeovers forced through by hedge funds for short-term profit that’s not in the long-term interests of the British economy.”