Takeover rules may be toughened; Kraft bosses to face MPs

Takeover rules may be toughened as the Takeover Panel is going preparing to scrutinize its rules in the wake of Kraft’ s takeover of the British chocolate maker Cadbury.

The Takeover Panel has plans to come up with a consultation paper on possible reforms to the Code that governs corporate acquisitions.

Trade Minister Lord Davies said the recent takeover of Cadbury by the US foods giant had raised several issues that the Takeover Panel must discuss.

Separately, Kraft bosses as well as senior Cadbury executives will face MPs who will question them about the way the takeover process was handled.

Members of the Commons Business, Innovations and Skills committee, which includes MP Roger Berry, will question the executives of both the companies.

Speaking on the topic, committee's chairman Peter Luff said, "Kraft gave a number of undertakings before its takeover of Cadbury. We will be testing those undertakings and put Kraft's plans for the future of Cadbury under the spotlight."

The Committee is also holding an enquiry into the controversial sale of Cadbury in a deal worth 12 billion pounds.