In the wake of the launching of a consultation by the Takeover Panel on the code governing mergers and acquisitions, it seems that the rules governing takeovers of British companies could be toughened.

The move comes after Kraft's contentious £11.6bn takeover of Cadbury, prompting calls from Business Secretary Lord Mandelson, and Richard Lambert, Head of the CBI, the Employers' Organization, for a re-examination of takeovers of British companies.

The Panel said that “the decision for a review had been taken in the light of recent commentary and public discussion, and suggestions for consideration from the Secretary of State for Business, Innovation and Skills”. The brief statement said the Panel's review would look at "certain code provisions" but specifically mentioned an analysis of “the timetable for determining the outcome of offers”.

The Takeover Panel said, “The code committee welcomes suggestions on how the code could be amended to take account of changing market practice”.

Taking to The Daily Telegraph, Anthony Pullinger, the Panel's Deputy Director General said, “This has been led by the Code Committee in light of the public debate that arose from the Kraft/Cadbury bid. It will cover a wide scope of ideas, including the offer time table, the issue of short-term investors, increasing disclosure and raising thresholds, along the lines that were suggested by Roger Carr. Those dozen or so ideas will be distilled down by the Code Committee after submissions have been received”.