Lord Myners joins call for investigation into Kraft's takeover of Cadbury
Mar 9 2010 by Alun Thorne, Birmingham Post
The complaint to the takeover panel was made by Amoree Radford, who heads up the Save Cadbury’s campaign to preserve Keynsham’s chocolate factory, and local Tory candidate Jacob Rees-Mogg.
They allege in the letter that Kraft did not adhere to UK regulations requiring firms to prepare statements with the highest degree of care and accuracy.
The letter states: “The speed with which the closure was announced indicates that the stated intention to keep the factory open was either made without due care or was knowingly inaccurate.
“It is our view that this type of behaviour discredits the City, undermines confidence in financial markets and deserves stern disciplinary action.”
The takeover panel declined to comment and Kraft was not immediately available for comment.
News of the complaint comes as Cadbury shares officially delisted from the London Stock Exchange after the takeover was sealed on February 2.
Kraft’s purchase of Cadbury continued to attract controversy, particularly on the subject of UK jobs.
The Business Select Committee will question Kraft executives later this month on the company’s future plans.
Last month the US firm said it was “unrealistic” to reverse Cadbury’s plans to shut the Somerdale factory.
It said Cadbury had already spent £100 million on building new facilities in Poland and most production would be transferred by the middle of this year.
And this month Kraft further drew the fire of UK unions when it announced its first job cuts within weeks of the takeover.
Up to 150 jobs are threatened at Cadbury’s offices in Uxbridge, west London, and Bournville in Birmingham as Kraft looks to cut out duplications in its newly enlarged operations.
Products manufactured at the Somerdale site include Fry’s Chocolate Cream, the Double Decker, Dairy Milk, Chocolate Buttons, Creme Eggs and Mini Eggs, Cadbury’s Fudge, Chomp and the Crunchie.
Jennie Formby, Unite national officer for food and drink, said: “Unite firmly believes that in making the apparent promises that they did over Somerdale, Kraft breached the high standards of integrity required by the takeover code and as a result Unite has made representations to the takeover panel giving details of where we believe the code has been breached.
“We very much hope that a thorough investigation will take place but will have to await an announcement from the panel as to what the next steps are likely to be.”
