Golden shares: a tarnished solution that smacks of protectionism

{"text":[[{"start":12.65,"text":"State-held shares are back on the agenda. "},{"start":15.467,"text":"Popular during Europe’s wave of privatisation in the 1970s and 80s, so called golden shares — spezialaktie in Germany — allowed governments to wield control over a slew of public companies including utilities and oil and gas majors. "},{"start":28.284,"text":"By far the bulk had been redeemed by the turn of the millennium. "}],[{"start":32.65,"text":"With globalisation in retreat and protectionism firmly re-ensconced, British politicians are hoping to spark a revival. "},{"start":39.429,"text":"The defence committee wants them reinstated across defence companies, irked at US private equity owned Cobham’s $3.6bn bid for Ultra Electronics. "},{"start":48.259,"text":"More speciously, MP Tom Tugendhat is angling for a government share — and a 25.1 per cent stake — in Arm, the chip designer, which owner SoftBank plans to list in New York after its planned $40bn sale to Nvidia collapsed. "},{"start":62.263999999999996,"text":"Echoing Washington and Beijing, he argues that national security is part and parcel of technological leadership. "}],[{"start":69.4,"text":"State shares, like those held by tech founders, take a toll in terms of performance and free markets. "},{"start":75.45400000000001,"text":"An asymmetric veto on takeovers deprives other shareholders of the opportunity to sell; a particular handicap in the UK’s M&A-heavy market. "},{"start":83.409,"text":"Take the redemption of golden shares in water and electricity utilities in the mid-1990s. "},{"start":88.552,"text":"To the dismay of politicians, this unleashed a flurry of bids and within two years all but one of the 12 regional electricity companies had been flogged. "}],[{"start":97.2,"text":"The European Commission, more concerned at the impediment to the free flow of capital, was largely successful in stamping them out although holdouts — especially in the UK — remain. "},{"start":107.679,"text":"These include BAE and Rolls-Royce, both of which operate defence capabilities. "}],[{"start":112.91,"text":"There is a case to be made for government vetoes when it comes to national security. "},{"start":117.527,"text":"Golden shares also have a use elsewhere, such as fostering environmental or social missions. "},{"start":122.744,"text":"The Thomson family’s founders’ share in Thomson Reuters, designed to safeguard independence and lack of bias in reporting, also makes sense. "},{"start":130.337,"text":"Slapping similar government rights on to tech companies does not. "}],[{"start":133.75,"text":""}]],"url":"https://creatives.ftacademy.cn/album/73194-1654342159.mp3"}