Kraft facing probe over decision to shut Cadbury factory
Kraft facing probe over Cadbury takeover following decision to close Bristol factory
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By Darren Estwick. |  |
Monday, 08, Mar 2010 02:55
Kraft is facing an investigation by UK regulators after a complaint was made alleging the US food giant misled Cadbury employees during its takeover of the British firm.
It has been reported Kraft will face the City's Takeover Panel, after deciding to close a Cadbury plant in Bristol which it had said it would save, seeing 400 jobs lost.
The Wall Street Journal said the City Takeover Panel would be looking into the claims Kraft said it would keep the plant open, despite later saying it was "unrealistic" to reverse Cadbury's plans to shut the Somerdale factory.
Amoree Radford, who leads a campaign to preserve Keynsham's chocolate factory, told the BBC she had complained to the Takeover Panel along with the local Tory candidate, Jacob Rees-Mogg. "We know we can't get the jobs back, but we want the authorities to learn their lessons so it doesn't happen to another company later", she said.
Plans to close the Bristol plant were originally posed by Cadbury in 2007 under plans to move production to Poland. Announcing the closure of the plant last month Irene Rosenfeld, chairman and chief executive of Kraft Foods, said: "It became clear that it is unrealistic to reverse the closure programme, despite our original intent to do so. While this is a difficult decision, we have moved quickly to end any further uncertainty."
The Kraft/Cadbury takeover saga began in September 2009, when the British firm rejected a £10 billion bid. Cadbury then rejected Kraft's hostile bid in November, and following a detailed bid aimed at shareholders from Kraft, Cadbury urged its shareholders to reject the offer later in 2009.
But on February 2nd, Kraft officially completed its takeover after shareholders voted in favour of the £11.5 billion ($18.9 billion) deal.