He wants new rules of engagement for contested takeovers, starting with a two-thirds majority vote for a change of control, and a lowering of the disclosure threshold for ownership to 0.5 per cent. The first is clearly anti-democratic, while the second is probably irrelevant. Still, Mandelson is right to worry about the lure of what he called "the fast buck". Too many participants gain when a contested bid succeeds. The bidder's chief executive's career is on the line, while the target's executives see their long-term incentives crystallise overnight. The bidder's advisers hardly care if their client overpays, and the other side can present the buyer with a fat, signed-off bill.   Related Articles Lord Mandelson urges changes to the Takeover Code Takeover Panel's timetable review is long overdue Cadbury takeover row prompts rules revamp UK takeover threshold should be raised, says ex-Cadbury chairman Change the tax code not the Takeover Code to encourage long termism Revealed: How David Cameron's reshuffle stole a march on Gordon Brown These are some of the factors that tilt the balance of advantage towards the bidder.[Read more...]