Takeover buyouts and standards in the City - Governors speech

Quarterly Bulletin 1989 Q4
Published on 01 December 1989

Discussing some of the main issues concerning takeovers and mergers in the United Kingdom, the Governor examines some of the questions they raise for company-shareholder relations, emphasising the advantages that could flow from more positive action from shareholders to influence or change management where circumstances warrant. He goes on to consider the conflicts of interest that arise in total management buyouts and the ideas being proposed for containing them, noting, in particular, the importance of strong independent representation on company boards and the role of the Takeover Panel in the debate. He comments also on the financing of leveraged transactions, and stresses that the banks need to exercise proper caution, and ensure that their involvement is commensurate with their expertise and takes account of the special scale and nature of the risks. Finally, he underlines the need for the highest standards in all the business conducted in the City, arguing that it is a vital task of management to develop and maintain a corporate ethos which supplies the answers to the fundamental questions of what is right or wrong in any given circumstance.

PDFTakeover buyouts and standards in the City - Governors speech

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