Labour bid to court business overshadowed by ad row

By Kylie MacLellan and William James LONDON (Reuters) - Britain's opposition Labour Party faced embarrassment on Monday as an attempt to woo businesses ahead of a national election was overshadowed by a backlash from some of the firms it featured in a newspaper advert. Campaigning for the May 7 vote -- which, with the main Conservative and Labour parties neck and neck in most polls, looks set to be Britain's most closely fought national election in decades -- began on Monday when parliament was dissolved. The $2.8 trillion economy is a key battleground, with Prime Minister David Cameron's Conservatives hoping to capitalise on a strong recovery and Labour warning of the risks for businesses of a referendum on European Union membership pledged by Cameron. If he wins, Cameron, has said he will renegotiate the terms of Britain's EU membership ahead of an in-out vote to be held by the end of 2017. While many companies want to see EU reform, the prospect Britain could leave the bloc, a scenario dubbed "Brexit", has unsettled those fearful of losing their access to Europe's single market of 500 million people. Labour, whom polls show is not as trusted with managing the economy as the Conservatives, played up those fears with a full page advert in the Financial Times on Monday titled "The biggest risk to British business is the threat of an EU exit". But some firms quoted in the advert sought to distance themselves from Labour. A spokeswoman for Siemens said Labour had "overstepped the line" by using a quote from its UK Chief Executive Juergen Maier in the advert. "We are very supportive of Britain remaining in a reformed EU. However it is not to be seen as support for any political party. Siemens is an apolitical organisation," Siemens said in a separate statement. Maier, who was attending Labour leader Ed Miliband's launch of the party's business manifesto, was pursued out of the auditorium by journalists seeking comment. Breakfast cereal maker Kellogg's criticised the use of a quote by its UK managing director Jonathan Myers in the advert, saying it was taken from a speech made more than a year ago about challenges to growth in the city of Manchester. "What he was expressing was a concern about the insecurity which comes from the uncertainty about Britain’s position in the EU -- nothing more," a spokesman said, stressing the firm was non-partisan. Nomura was also unimpressed by the inclusion of a comment from Vice Chairman Andrew Cahn. A source close to the bank said it operated a "strictly politically neutral standpoint". When asked about the row, Miliband told Bloomberg Television the quotes had been cleared with the companies, and rejected the suggestion the advert implied the firms had endorsed Labour. Speaking after the event, one Labour aide said: "No one is doubting the accuracy of the quotes, no one is saying anyone is coming out and supporting the Labour Party. I don't see what the issue is." (Editing by Guy Faulconbridge and Catherine Evans)