§ Mr. Austin MitchellTo ask the President of the Board of Trade in which EU countries(a) the national law or (b) shareholder restrictions prohibit the takeover or buyout of major manufacturing companies by foreign firms; and if he will make a statement.
§ Mr. Neil HamiltonThe treaty of Rome prohibits arty member state from discriminating against bidders from other EU countries, except in very limited circumstances, for example where there are national security considerations.
Other restrictions, in the form, for example, of differential voting rights and cross-shareholdings, are a common feature of continental corporate structures, although they tend to operate against all hostile takeover approaches, not just those from foreign companies.
§ Mr. Austin MitchellTo ask the President of the Board of Trade if it is Her Majesty's Government's policy to encourage the sale of manufacturing capacity to foreign firms.
§ Mr. NeedhamWe shall continue to maintain our successful open and liberal policies towards both inward and outward investment and will not seek to impose arbitrary restrictions which only serve to distort the market.
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