§ Mr. Hooleyasked the Chancellor of the Exchequer what steps are being taken to protect British companies from being taken over by foreign commercial or business enterprises at cheap rates arising from the fall in the value of sterling.
§ Mr. Robert SheldonExisting exchange control rules ensure that the price paid by a non-resident when taking over a British company is fair and reasonable. This is normally judged in relation to the market price of the securities involved. Floating rates of exchange will affect the foreign currency cost of purchasing sterling securities, as indeed will fluctuations in the sterling market price of the securities themselves. But so long as the takeover is acceptable in all other respects there seems at present no reason to take steps to influence the price arrived at between a willing seller and a willing purchaser.