Reuters | Britain’s takeover watchdog, stung into action by Kraft Foods’
controversial takeover of Cadbury, has asked for opinions on a slew of
rule changes that could raise the bar for acquisitions.

The Takeover Panel’s consultation follows debate among business leaders
and politicians about whether the country’s decades-long openness to
deals puts it at a long-term disadvantage.

If adopted wholesale, the new rules could prevent hedge funds and others from voting on takeovers when they bought stock during a bid battle, and could force companies to disclose the fees paid to investment banks for merger advice.

While takeover-rule changes usually only excite bankers, lawyers and academics, the furore over Cadbury means this open consultation could provoke a much wider response, from unions, think tanks, business groups and elsewhere.