CITY RULES OK? POLICY COMMUNITY, POLICY NETWORK AND TAKEOVER BIDS

Abstract

This paper uses the concepts of policy community and policy network to analyse the particular set of industrial policy issues related to the conduct of takeover and merger bids. Within the general context of the law, the regulatory climate is governed by the principle of voluntary self‐regulation, which since 1968 has been partly articulated in a written code whose rules are interpreted and enforced by a non‐statutory body, the City Takeover Panel. The panel is one of several ‘insider’ organizations identified and categorized in terms of policy community. Relationships between it and other ‘insiders’ in the policy processes are analysed in terms of policy network and ‘rules of the game’. It is argued that the stability of that network is increasingly threatened by the environmental turbulence provoked by the Guinness affair and the passage of the 1986 Financial Services Act.