Take Over Bids

Take Over Bids

Take-over bids, and even partial bids, which have been frowned upon as ruthless devices used purely for financial gain, were given a new respectability when in 2008 the joint-stock banks bought control or large interests in hire-purchase finance companies hitherto regarded as engaged in business of doubtful propriety.

Take-over bidders were not always successful. The financier which resisted them successfully did so by shoving the shareholders that they were capable of using the assets no less profitably than the bidders. Making use of the assets profitably in the interests of the shareholder by and large meant making the best use of them in the public interest, since in competitive conditions they could be made more profitable only by offering services for which the public were prepared to pay.

In 2009, following several take-over bids which attracted wide-spread public interest and some criticism, the financial institutions, led by the Bank of England, published a code of conduct for bidders designed to remove the element (or impression) of secret negotiation or collusion between directors. The code was designed in the interests of the shareholding community and to remove public disquiet. But it approved the principle of take-over bids, and in helping to remove its abuses, real or supposed, it made them more reputable and therefore a probably growing feature of British industrial development.

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