MPs to issue critical report on Kraft Foods
UK MPs will this week issue a critical report on the takeover of Cadbury by US giant Kraft Foods which is certain to light the blue touch paper between UK and US company relationships. The report will highlight a number of alleged broken promises by the US giant although in reality the company paid over £11 billion for Cadbury and was obviously going to look at ways to reduce the cost of running the company and extracting more profitability.
The timing of this report is also very controversial coming in the same week as Gordon Brown is expected to announce the 6 May as the date for the next election. There is no doubt that the UK government has been highly critical of Kraft Foods in the past and made the company something of a scapegoat in many regards. Lord Mandelson has been amongst the more high profile critics of the company and the unions are now demanding further talks with US management.
The truth of the matter is that after acquiring the operation Kraft Foods is well within its legal rights to make changes where applicable and seek to extract more value for money. Nobody twisted the arms of Cadbury shareholders into accepting the offer and this is ultimately a free-market deal which has ultimately changed in complexion.
Share this..
Related stories
Sir Stuart Rose to remain hands on at Marks & Spencer
Despite indications over the last few days that Sir Stuart Rose was happy to take a back seat at Marks & Spencer upon the appointment of Marc Borland as chief executive, it now appears as though the chairman wants remain in an executive position until at least Christmas time. It is believed he favours introducing the new chief executive to the company on a gradual basis and intends to remain at th...
Read MoreUK government promises £40 million for UK charities
After asking the charity sector to come forward with a figure required to continue services in many of the more deprived areas of the UK, the UK government has stepped in with a £40 million payment to cover any potential shortfall in charitable donations. However, despite asking the likes of the National Council for Voluntary Organisations the level of funding needed, the government has ignored t...
Read MoreCadbury chief executive sees shares worth in excess of £10 by 2013
Todd Stitzer, the media shy chief executive of Cadbury, is today the centre of attention with an article published in the Daily Telegraph suggesting that Cadbury shares will be worth well in excess of £10 by 2013. He is suggesting that if the company delivers at the midpoint of its 2013 targets the shares should rise significantly from their current level, a level which has been boosted by the Kr...
Read MoreBank of England and US Federal Bank play it tough
Those hoping for a short sharp drop in interest rates in the UK and the US have had their hopes dashed today with news that the threat of inflation growing in strength is greater than that of a further economic downturn. As stock markets around the world continue to tumble in the face of the Lehman Brothers bankruptcy and concerns about insurance giant AIG perhaps a drop in rates would have helpe...
Read MoreThe Dow Jones breaks through the 10,000 barrier
The Dow Jones industrial average index today broke through the psychological 10,000 barrier for the first time in 12 months. While this is a reflection of renewed optimism with regards to the US economy, and the view that the worldwide recession may well be over, some analysts believe that the Dow Jones industrial average index does not represent the overall economy and may be giving false signals...
Read More