Takeover panel criticises acquisition of Cadbury
The UK takeover panel has today issued a damning indictment on the actions and activities of Kraft Foods before, during and after the acquisition of Cadbury. The £11 billion acquisition was dogged by controversy from day one and today we saw a major victim in the UK when Peter Kiernan was forced to pull out of the running to be the new director-general of the takeover panel due to his connection with Lazards, which was one of the main advisers to Kraft Foods.
The main problems regarding the acquisition of Cadbury surrounded the company's Somerdale factories which according to Kraft Foods, prior to the acquisition of the company, would be saved from closure. However, only days after the bid was voted through and the company officially took control of Cadbury we saw an about turn and the factory has been earmarked for closure with much of the production to be transferred overseas.
While there is no doubt that Kraft Foods had originally suggested the factory would remain open ironically it had already been earmarked for closure by Cadbury. However, this is not the only issue which the takeover panel and various UK investors have with Kraft Foods which has appeared to renege on a number of "promises" made before, during and after the acquisition.
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