§ Mr Yeoasked the Secretary of State for Trade and Industry if he has plans to introduce legislation to give statutory backing to the City code on takeovers and mergers; and if he will make a statement.
§ Mr HowardThe Government have decided not to include provisions on the regulation of takeovers in the Financial Services Bill. In reaching this decision we have considered carefully the views which the panel, the Bank of England, the Securities and Investments Board Ltd and others have put to us. The Government believe that the panel is doing a good job in regulating takeovers on a non-statutory basis, that it injoys the support of the City, and that no change is desirable at present in the status of the panel and the take-over code.