Business Secretary Lord Mandelson has urged the Government to reform its takeover rules to ensure long-term benefits over short-term financial gains.

The Takeover Panel started reviewing the Takeover code last month after Business Secretary criticized the US food giant Kraft's takeover of British chocolate maker Cadbury. In a Mansion House speech yesterday, he said Takeover Panel should have the ability to block the deals approved by less than two-thirds of shareholders.

The business secretary also said that companies making bids in the UK should be required to unveil their plans to their own shareholders. Bidders should also establish openly how they intend to finance their bids in the long-run.

Speaking on the topic, Mr. Mandelson said, "Obviously we need directors equipped to be stewards rather than just auctioneers."

Mr. Mandelson added that there should be greater transparency on advisers' fees and incentives.