Labour plans to introduce ‘Cadbury deal’

Britain's Labour Party, if elected again to power, is expected to introduce new a `Cadbury Law' to protect British industry from being taken over by foreign companies.

Earlier in February, the ruling Labour Party had announced that it was powerless to stop the £11.5 billion buyout of British chocolate-maker Cadbury by American food giant Kraft.

The new rules may insist that big transactions must be approved by two-thirds of shareholders. Currently, takeover deals require only simple majority.

New rules may also hack the influence of short-term investors like hedge funds, by stopping them from purchasing shares during bids and from voting on big transactions.

But the BBC said the powers that the Labour Party wanted would be limited to utility firms.

But, a group of City bosses has criticized Labour's such plans, describing them as impracticable and costly. The group also warned that the proposed rules might pose a threat to country's standing as a global financial hub.