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Powers to restrict takeovers being included in Labour's election manifesto could not have stopped the £11.5bn buyout of Cadbury, the BBC understands.In February, the government said it was powerless to stop the chocolate maker being sold to US food giant Kraft.
It was initially thought the Labour manifesto would include provisions for a "Cadbury's Law", allowing ministers to block deals in the public interest.
But the BBC now understands the powers will be limited to utility firms.
Business editor Robert Peston said the manifesto would "call for the business secretary to have a new quasi-judicial power to block takeovers but only takeovers of utility companies and infrastructure businesses".
There would be a recommendation from the relevant regulator, such as Ofwat for water companies, as to whether the takeover was in the public interest, before the business secretary would make the final decision.
The BBC understands the manifesto will state the case for making it harder for any bidder to buy any company, through a requirement for approval of two-thirds of shareholders.
"This would apply to all takeovers, and not just the takeovers of companies somehow deemed to be strategically important," said our business editor.
Under the current law, a straight majority will suffice. However, Labour are likely to leave any decision on that to the independent Panel on Takeovers and Mergers, which is conducting a review.
The campaign for the so-called Cadbury's law has been led by the Unite union, but has gained popularity among those unhappy at the way in which the confectioner was bought out by Kraft.
Some observers felt Kraft should have paid more for Cadbury and that short-term investors pushed through the deal.This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.