Kraft wins battle for Cadbury

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Tuesday, February 02, 2010
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This is Gloucestershire

​US food giant Kraft today won its five-month battle for control of Cadbury after shareholders backed its takeover offer.

The vote paves the way for Kraft to snap up Cadbury – ending its 186-year history as an independent company.

Kraft’s cash-and-shares deal, recommended by the Cadbury board two weeks ago, values the UK firm at around £11.4 billion.

The result came as hundreds of Cadbury workers staged a noisy protest in Westminster to call for guarantees for their jobs and conditions.

They pressed for a new law to be introduced to prevent any more British “icons” being bought up by a foreign firm.

Investors holding 71.7% of Cadbury's shares have backed the takeover. The offer will remain open for shareholders who have yet to accept until further notice.

When the US giant passes the 75% threshold it will take the company off the stock market, and when it reaches 90% support it can automatically buy up the remaining shares.

Kraft chairman and chief executive Irene Rosenfeld said the combined business had a “phenomenal future”.

“Together we have impressive global reach and an unrivalled portfolio of iconic brands, with tremendous growth potential.

“I warmly welcome Cadbury employees into the Kraft Foods family and look forward to meeting many of them in the days and weeks ahead.”

Jack Dromey, deputy general secretary of Unite, called for ``cast-iron guarantees'' over the future of workers at the business.

Speaking at today’s demonstration, he said: “This is a sad day for Britain. A world class sector of British excellence is ”being taken over by a debt-laden US company.

“We now want cast iron guarantees from Kraft about the future for workers, and we want the Government to act as guarantor.”

Workers at the central London demo chanted Keep Our Jobs, and held up banners which read Don’t Sell Us Out. One protester was dressed in a gorilla outfit, banging a drum, to copy a Cadbury’s TV advert.

Mr Dromey added: “This must never happen again – the law must change to prevent hostile takeovers of successful British companies. We need a Cadbury law. We want Kraft to sit down with the unions, tomorrow, to discuss the future.”

Deborah Matthews-Booth, who has worked at the Bournville plant in Birmingham for 33 years, wore her factory uniform as she joined the protest to voice her concern about jobs.

“This is a very sad day for the workers – we have been left in the dark about the future. It is like a bereavement. All the workers, from the office staff to the production workers, are worried about their jobs.

“The Government should have done more to stop this happening – they could have stepped in to help us.”

Rob Phillips, who has worked at Cadbury’s factory in Leominster for 27 years, said: “We are really disappointed at the way this has turned out. Cadbury’s has been a good employer but there are real worries now about what will happen under new ownership.

“There will be no British manufacturing left soon. The Government had a big opportunity to do something but they didn’t. They have let us down. This would never have happened in France or Germany.”

Business Secretary Lord Mandelson will be meeting Kraft management, including chief executive Ms Rosenfeld, tonight to discuss the company’s plans for Cadbury.

“We understand the strength of feeling for this company across the UK, however the decision on the Kraft bid is a matter for the Cadbury shareholders,” said an official at the Business Department.

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7 Comments

  • Profile image for This is Gloucestershire

    by Peter, Cheltenham

    Wednesday, February 03 2010, 5:44AM

    “Yet another British institution sold off. Made in Britain is no longer the case ;everything now is made all over the world but not here. This lousy Government will be selling Britain to the yanks soon, This country needs to be a manufacturer to pay off the Trillions of pounds of debt this Government has got us into but we sell all our assets How the hell are we ever going to pay off the debt when we are not earning anything ; we are on our way to bankruptacy.”

  • Profile image for This is Gloucestershire

    by God, Heaven

    Tuesday, February 02 2010, 9:38PM

    “Sorry, I'm too busy eating my way through a pile of Toblerones that Kraft sent me ;)”

  • Profile image for This is Gloucestershire

    by to Steve, Glos

    Tuesday, February 02 2010, 9:08PM

    “Now you call God for help?
    This is no god land.
    Its a country of egoistic, hedonistic individuals. So nobody cares how the chocolate taste aslong as can afford to buy a tasty one himself.”

  • Profile image for This is Gloucestershire

    by chris, glos

    Tuesday, February 02 2010, 7:09PM

    “Its like the crown jewels being stolen”

  • Profile image for This is Gloucestershire

    by chris, glos

    Tuesday, February 02 2010, 7:09PM

    “Well goodbye nice tasting cadburys chocolate as i bet in a few years time kraft will cut corners and source cheaper ingredients which would make the chocolate not taste as nice. Why does everything revolve around money, did the shareholders not think of the staff who may and i say may as i had heard kraft would have to make some cuts and 1 of them was a cut in staff”

  • Profile image for This is Gloucestershire

    by Elsie the Pie and Mash Queen, Lambeth Walk

    Tuesday, February 02 2010, 6:29PM

    “Cheesy garlic chocolate with chives? Pre sliced, ready to go on my burger? Grrrrrrreatttt!”

  • Profile image for This is Gloucestershire

    by Steve, Gloucester

    Tuesday, February 02 2010, 6:07PM

    “Shareholders GREED again instead of united in being British,God help this sinking country.”

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