By Daniel Hunter

As part of the continued response to the Kay Review the government plans to become more active in mergers and acquisitions involving UK companies.

The decision is part of the government response into how to discourage short-termism in markets, and as such they [the government] have decided to "engage with companies and their investors... to promote investment which benefits the UK economy".

Professor John Kay, whose report was commissioned by Business Secretary Vince Cable and published in July, called for it to discourage acquisitions that would threaten a firm's operations in the UK.

Professor Kay's 10 principles for stock markets, which were designed to encourage more focus on the long-term returns from businesses rather than short-term profits have been endorsed by BIS.

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