P. M. BRIEFING : Pa. Tough Takeover Law in Effect

Gov. Robert P. Casey today signed the nation’s toughest anti-takeover law in hopes of cooling the threat of corporate raiders targeting Pennsylvania companies.

The law, which took effect immediately, has been the center of a national debate that pitted leading members of the investment community against state labor and business groups. Its far-reaching provisions are expected to set off ripples in boardrooms and legislatures throughout the nation.

For the first time in any state, raiders will be forced to surrender short-term profits from takeover attempts. The law also clamps down on raider voting rights and establishes protections for labor contracts when corporations change hands.

Casey said the law puts the interests of Pennsylvania companies and families above those of corporate deal makers, whose motives are rooted in a zeal for profits.

“Pennsylvania doesn’t need any more of the kind of takeovers which have destroyed communities, disrupted families and put thousands of workers out of jobs,” Casey said in a statement.