The government will look again at investor "short-termism" with the view that its behaviour is dangerous.

Vince Cable, Business Secretary, said on Sunday that “short-termism” is damaging in takeover battles. The Takeover Panel published proposal on Thursday after the wake of anger which was felt regarding the controversial 11.6 billion pound takeover of Cadbury by U.S rival Kraft Foods.

Cable felt that the Takeover Panel did not commit to some of the more radical plans such as restricting the rights of short-term investors however he also expressed concern that executive pay had far outstripped shareholder performance during the past decade.

Cable said: “It is a tricky issue whether we legislate to give shareholders more voting power.”

The takeover of Cadbury caused outrage and concern in a lot of areas. This was partly due to the hedge fund's role in securing the deal. Kraft also annoyed many by going back on a promise to keep a plant open.