UK Business Secretary to set out new takeover rules

UK Business Secretary Vince Cable is shortly to announce new regulations to deal with foreign takeover of British firms, telling the national broadcaster, the BBC, that any commitments must have no "wiggle room" for companies to evade legal responsibilities during takeovers.

The proposed development comes in the wake of US pharma giant Pfizer’s (NYSE: PFE) failed attempt to acquired smaller rival Anglo-Swedish major AstraZeneca (LSE: AZN), with the Business Secretary saying he wants the new regime overseeing takeovers to also include possible fines for firms which renege on promises made during the deal. Pfizer walked away from the deal, following three rejections of its hostile bid attempts in May, but many observers believe the company will come back to the table after the six-month “no-return” waiting period mandated by current UK takeover regulations.

Tighter “national interest test” also possible