http://www.djnewswires.com/eu
UPDATE: British Government Seeks Power To Buy Companies
By Alistair Barr
SAN FRANCISCO (Dow Jones) -- The U.K. government will introduce legislation this week that will give it the power to acquire companies as it nationalizes troubled mortgage lender Northern Rock PLC.
U.K. finance minister Alistair Darling said the bill, which will be introduced to the House of Commons on Monday, will allow the government to buy the shares and assets of Northern Rock.
But the legislation would also give the government general power to acquire shares or assets and liabilities of other institutions too, he added.
"We have deliberately drafted the bill to ensure that a bank can only be acquired in certain tightly defined circumstances. And that power will only last for twelve months," Darling explained. "I've already announced a consultation which will lead to permanent legislation to deal with situations like this in the future."
Darling didn't provide any further information, but said details are in the Bill, which will be published on Monday.
(END) Dow Jones Newswires
February 17, 2008 22:23 ET (03:23 GMT)
U.K. finance minister Alistair Darling said the bill, which will be introduced to the House of Commons on Monday, will allow the government to buy the shares and assets of Northern Rock.
But the legislation would also give the government general power to acquire shares or assets and liabilities of other institutions too, he added.
"We have deliberately drafted the bill to ensure that a bank can only be acquired in certain tightly defined circumstances. And that power will only last for twelve months," Darling explained. "I've already announced a consultation which will lead to permanent legislation to deal with situations like this in the future."
Darling didn't provide any further information, but said details are in the Bill, which will be published on Monday.
(END) Dow Jones Newswires
February 17, 2008 22:23 ET (03:23 GMT)
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