UK authorities looking into Kraft Foods takeover of Cadbury
In a startling development it has been revealed that the Panel on Takeovers and Mergers is looking into the takeover of Cadbury by Kraft Foods. It is believed the authorities have received complaints regarding comments made during the bidding period when Kraft Foods appeared to indicate that the company's Somerdale's plant would remain open despite the fact that Cadbury itself had earmarked the operation for closure.
After the company was successful in acquiring Cadbury a U-turn was announced whereby the original decision by Cadbury to close the plant in question was upheld. It is unclear exactly what the authorities may or may not do if the company is found to have "misled" investors during the bidding period because ultimately situations change and Cadbury had itself initially earmarked the plant for closure.
There is no doubt that the Kraft Foods acquisition of Cadbury has become one of the more controversial of recent years with the UK government apparently concerned about job prospects for the existing Cadbury UK operations. There has been some suggestion of potential protection rules and regulations in the future which would safeguard UK employment in the event of future takeovers but ultimately this goes against the grain of a free market and is unlikely to be adopted.
Share this..
Related stories
Ryanair pulls out of deal with Boeing
Budget airline Ryanair has today revealed it has pulled out of talks with aircraft giant Boeing after the pair were in discussions about a potential 200 aircraft order. While the company has suggested talks ended because the pricing or contractual terms conditions were not to its liking, it is common knowledge that the UK industry is struggling and literally every penny will count in the weeks and...
Read MoreVince Cable tries to win round the City
In his first major speech to the City, Business Secretary Vince Cable has been forced to defend himself against accusations that he is more pro-socialism than pro-capitalism. Vince Cable upset many in the city during the election campaign by describing them as "Scargills in pinstripes" although he is adamant that his comments were taken out of context. So can Vince Cable work with the city? Pri...
Read MoreLondon Stock Exchange to take a controlling share in rival
The London Stock Exchange is believed to be on the verge of announcing a deal which would see the company take a 60% stake in loss-making trading platform rival Turquoise. The London Stock Exchange has been in talks with its rival since October and many believe it is on the verge of injecting up to £20 million into the operation in exchange for 60% of the business. This is quite a clever move...
Read MoreFSA Demand Tighter Control Of Takeovers
While insider dealing has been a problem since time began, the Financial Services Authority has again issued another warning to those in the industry, demanding that confidentiality obligations are honoured and leaks are plugged. Even thought the regulators have spent literally millions of pounds trying to solve the problem of leaked information, insider trading and ultimately ‘unexplained&...
Read MoreWomen make a success of property investments
According to a new study conducted by Bradford & Bingley, women are just as successful and ambitious as men when it comes to property investments.The study found that over three quarters of female property investors manage to hold down day jobs, as well as manage their investment properties and a quarter said that they intended to expand their sideline by investing in further properties within the...
Read More