Posted on 12/11/2006 2:47:35 AM PST by Mrs Ivan
Gordon Brown's chief lieutenant today heralded the sell-off of UK plc.
Treasury minister Ed Balls said the Government will not block an American takeover of the London Stock Exchange.
And in an interview with the Evening Standard, he declared that no ordinary City firm should be immune to a foreign takeover.
"I think we gain from having the best talent and expertise - and that applies whether we are talking about investment banks, insurance companies or exchanges," he said.
His pro-market comments come amid worries that a possible takeover of the LSE by Nasdaq would expose it to tougher US regulations, undermining its competitive edge.
A string of other big name companies are being hunted by foreign giants, including Silk Cut tobacco manufacturer Gallagher, steelmaker Corus and Channel Tunnel engineers Amec.
Mr Balls, Treasury Economic Secretary, is Mr Brown's closest ministerial ally and his views are shared by the Chancellor.
Mr Balls said takeovers were not a problem, insisting that what mattered were the jobs and investment that new owners could bring to the UK.
He added: "There's one view in the world that says we should be backing national champions and trying to stop international ownership of British names. There are other countries which judge their success on whether their national companies are getting a bigger market share.
"In Britain we judge our success by the number of jobs, the quality of those jobs, the depth of our markets and the business we are doing around the world.
"If we can persuade the best companies to come here rather than to New York or Tokyo that is a huge sign of success, a success that rewards us with the best jobs, higher wages and more tax revenues flowing for our public services."
But City commentator Anthony Hilton said takeovers had often resulted in a dearth of investment. "The City is in denial about this downside," he writes in today's Standard.
Hilton cites the sale of Thames Water and the electricity industry to foreign firms, adding: "The fact is that no serious economy in the world apart from Britain allows foreign firms to buy everything."
In outspoken comments, Mr Balls said that if Nasdaq succeeded it would be "crazy" to undermine the light-touch regime that has made the LSE so popular with firms and investors.He admitted that many City figures had "the jitters" at first but believed they had been reassured that the Government would act immediately to block any threat to the LSE's traditions.
"We already have a number of exchanges that are foreign owned, not least Liffe, the futures and derivatives exchange," he said.
"The City's great strength in the last two decades has been that we have brought the best management expertise and talent from around the world, who all want to do business in London."
Critics of Nasdaq's bid fear the tougher US regulatory regime imposed after the Enron collapse would be imported to the City.
In response, the Treasury is rushing a Bill through Parliament to ban any new owners from changing its rules without permission from the Financial Services Authority.
Although the minister denied there were any loopholes to allow heavy-handed US regulations to creep in by the back door, he said it was in any owners' interests to protect the LSE's traditions. "The reason they want to buy the LSE is because its name and the link to London is a huge attraction. Anyone who wanted to undermine that name or that link would be crazy.
"It would make no sense for a new owner to undermine that standing."
Mr Balls said he did not believe any ordinary company should be immune from a foreign takeover. "I think the City of London has thrived because of its international reach, and we have allowed international owners to come to our banks, our brokers and our exchanges. I don't think the LSE should be any different."
only in Britain..
Another thread claims the USA is about to be taken over by some Trilateral Commission-like conspiracy of Canada and Mexico, though, so don't worry about it, Brits.
<< .... Mr Balls .... >>
Must be a visiting foreigner or a first generation Australian immigrant.
'Must be a visiting foreigner or a first generation Australian immigrant.'
That's rich from a guy whose name is an anagram of 'Ball Are Inn' - hope it drops soon. . . . . . ;-)
I welcome foreigners buying British plant. Everybody wins from trade - or it wouldn't be called "trade".
As long as all y'all don't take me any more seriously than I, my well developed sense of the ridiculous alive and well, would presume to take myself, I'll be ballin' along. Blessings - Brian
Paging Mr.Balls,Mr.Balls you have a call on line 2. /snort
<< Paging Mr.Balls,Mr.Balls >>
He's a Limey: So make that "Ms Ballsup," please.
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