§ Mr. John CarlisleTo ask the President of the Board of Trade if he intends to act under the Financial Services Act 1986 in respect of Granada group's decision to understate publicly its intention for the disposal of the Meridien and Exclusive hotels of Forte plc. [9808]
7W
Mr. John M. Taylor[holding answer 16 January 1996]: Section 47 of the Financial Services Act 1986 provides that it is an offence for any person to seek to manipulate the market in or the price or value of any investments by issuing a statement, promise or forecast which he knows to he false or misleading. If the hon. Member has evidence of improper conduct, he should write to me.
If the bid by Granada Group plc for Forte plc is successful, it is possible that any subsequent disposal or proposed disposal by Granada of assets acquired from Forte might be subject to examination under the merger control procedures of the Fair Trading Act 1973, depending on the nature of the particular disposal in question and of the acquirer.