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Carr questions takeover procedures |
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Friday, 19 February 2010 |
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Roger Carr, the former boss of Cadbury, has suggested that the rules surrounding takeovers need to change to help protect companies against hostile bids.
Speaking as Oxford's Said Business School last week, Carr, who formed his career through acquisitions, is now questioning the whole takeover process, suggesting it needs to be reviewed.
"While capitalism is efficient, it may be unreasonable that a few individuals with weeks of share ownership can determine the lifetime destiny of many," Carr said.
He suggests that bids should only succeed if at least 60% of shareholders back the move, not just a majority, which is currently the case. "Any share that changes hands in a formal offer period would carry no voting rights until the offer period is over," he proposes further.
For a businessman whose success is built on takeovers, it's a surprising re-evaluation. Cadbury grew as a result of its own acquisitions - for example, Green & Blacks - and even during the Kraft bid, Carr was considering deals with Ferrero and Hershey.
Cadbury will be removed from the London Stock Exchange listings after 8th March. |