The Hindu Business Line : `UK Takeover Panel is an independent body'

The Commerce Minister, Mr Kamal Nath, was recently quoted as saying that the UK Government should not get involved in business matters such as the Corus deal. And that the Government should let the shareholders deal with the same.

"His comments came after the UK's Takeover Panel decided to intervene by arranging an auction of Corus," noted www.forbes.com in a story dated December 20. A section of the media carried the report under the headline, `UK need not meddle in Corus'.

On this, Business Line sought the views of a leading City of London lawyer. "The Panel is an independent body whose views do not reflect those of the Government. To suggest that the Government has intervened is ill-informed and frankly quite ridiculous," he says.

As a general rule, the Panel would only intervene at the request of the target or bidders, and its ruling in this case would certainly have been agreed by all parties concerned prior to being published, he explains. "This is not meddling."

The primary purpose of the Panel and the City Code of Takeovers and Mergers is to ensure fair and equal treatment of shareholders in a takeover, explains the UK legal expert. "By setting a deadline at the end of next month, the Panel has protected Corus from a long and drawn out siege and it has created an even playing field between Tata and CSN, thus, ensuring that the best offer wins on it merits. This is the best possible outcome for shareholders."

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