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SLG
Born Again..........and still Scottish!
Joined: 16 Sep 2005
Posts: 5515
Location: Dùn Eideann
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 Posted: Tue Nov 08, 2005 12:40 pm Post subject: Scottish Power takover |
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It's looking like the long awaited bid by EON is imminent. This would mean Scotland's fourth largest company losing its HQ. Although most of the jobs in energy production and sale would remain, the loss of high end HQ jobs, and influence of an Glasgow based decision making will have a significant impact. Should the parliament be trying to block this? Or should we leave SP to the same market place that has allowed companies like RBS to benefit?
Other European contries certainly make much stronger efforts to protect their key businesses.
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parkhead_rfb
Getting on a bit!
Joined: 13 Oct 2005
Posts: 1974
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| Posted: Tue Nov 08, 2005 3:34 pm Post subject: |
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wouldnt the parliament be banned from doing this by trade laws?
although i do know that other nations bend these rules.
_________________
"our revenge will be the laughter of our children" bobby sands MP
"there is no equality in a society that stands upon the political and economic bog, if only the strongest make it good or survive" bobby sands MP |
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SLG
Born Again..........and still Scottish!
Joined: 16 Sep 2005
Posts: 5515
Location: Dùn Eideann
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| Posted: Tue Nov 08, 2005 7:09 pm Post subject: |
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| parkhead_rfb wrote: | wouldnt the parliament be banned from doing this by trade laws?
although i do know that other nations bend these rules. |
I think it is legal for the state to intervene. The Monopolies Commission ruled against HSBC or Standard Chartered taking over RBS on the basis that "retaining such a business headquartered in Scotland was vital to the Scottish economy". The following article was in the Sunday Herald at the weekend. I doubt someone like John Kay and Richard Burns would be advocating this if it contravened any legislation.
| Quote: | Key Scots firms need ‘protection’
By Ken Symon and Ian Fraser
Companies that are crucial to the economy of Scotland should be protected from takeover, according to one of the UK’s leading economists.
John Kay, a visiting professor at the London School of Economics, said he was not arguing for a “Fortress Scotland” policy. But he said that key companies in the economy’s handful of vital sectors should not be allowed to be taken over by foreign predators.
In a talk to the cross-party group on the economy at the Scottish parliament, Kay cited the example of The Royal Bank of Scotland when it faced a takeover bid from the then Hong Kong and Shanghai Bank and Standard Chartered Bank in the 1980s.
He said that the then Monopolies Commission had ruled against the takeover because retaining such a business headquartered in Scotland was vital to the Scottish economy.
He said: “Events since have vindicated the strength of that position rather well.” But he added that decision would not be possible under the current remit of the Competition Commission.
Speaking after the meeting, Kay refused to be drawn on whether he believed that ScottishPower should be considered a company vital to Scotland’s economy.
Kay’s view was supported by Richard Burns, chief investment officer of Baillie Gifford. While no fan of government intervention, Burns argued there are circumstances where government or regulatory intervention can be justified, such as in the RBS instance in 1982.
Burns said: “My personal view is that the same sort of intervention probably would be justifiable in the case of Standard Life, if it becomes a quoted company and is then bid for.”
He said that, in view of the fact that any bidder would probably move the fund management operations away from Edinburgh, such a takeover “would be extremely damaging to Edinburgh as a centre of investment management”.
“You could certainly make that case – especially if you believe the UK needs two thriving investment management centres. The case is almost as strong as it was for the Royal Bank 20 years ago.” |
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SLG
Born Again..........and still Scottish!
Joined: 16 Sep 2005
Posts: 5515
Location: Dùn Eideann
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| Posted: Tue Nov 22, 2005 1:12 pm Post subject: |
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BBC are saying that Scottish Power have knocked back two bids from EON. Looks like that might be the end of it for now. Very good news for Cathcart and all the staff at SP. Not so good for the shareholders - shared down 7.4% last nigth 
http://news.bbc.co.uk/1/hi/business/4459472.stm |
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