Proshare Logo
   Market Date: 23-01-2015   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Elections Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Kraft Foods completes Cadbury takeover

Category: Capital Market

  Read (1959)
Kraft Foods completes Cadbury takeover


US firm Kraft Foods has sealed its takeover of Cadbury after shareholders in the UK chocolate maker voted in favour of the deal. Cadbury said it had received valid acceptances of the offer from investors representing 71.7% of the firm.

Kraft chief executive Irene Rosenfeld said: "I warmly welcome Cadbury employees into the Kraft Foods family." Earlier, Cadbury workers had staged protests in London calling for government support to guarantee jobs.

The deadline for Cadbury shareholders to accept a £11.5bn ($18.9bn) offer from Kraft was 1300 GMT. Business Secretary Lord Mandelson will meet Ms Rosenfeld later to discuss jobs.

Does it matter that Cadbury is no longer British?

Shadow business secretary Ken Clarke was also holding talks with Ms Rosenfeld over Cadbury's future.

'Phenomenal future'

When Kraft passes the 75% threshold it intends to take Cadbury off the stock market. When it reaches 90% support, under UK law, it can automatically buy up the remaining shares.

"The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals," said Ms Rosenfeld.

"Together we have impressive global reach and an unrivalled portfolio of iconic brands, with tremendous growth potential. "This combined company has a phenomenal future, and I firmly believe it will deliver outstanding returns to our shareholders."

'Meaningful pledges'

But earlier, unions voiced their fears over the takeover. Unite's deputy general secretary Jack Dromey said: "Our fear is that the Kraft takeover is not in the national interest, and in the months of this hostile takeover process, we have heard nothing from Kraft to calm fears that it is in the interest of the Cadbury workforce either.


Workers at a factory in Bournville explain why they are protesting

"Instead, the fate of manufacturing workers in Terry's of York, who found that Kraft ownership saw their plant close, weighs heavily on the minds of the Cadbury workforce." He added: "The government must secure meaningful pledges from Kraft, and police them so that Kraft cannot again walk away from a UK workforce.

"Ministers must make it abundantly clear that closures and mass redundancies will not be accepted by the British government or the British people."

Last month, Unite warned shareholders of the British chocolate-maker that Kraft's debts, estimated to be about £22bn, meant there could be an "irresistible imperative" to reduce costs by cutting jobs. Unions fear Kraft will move quickly to recoup the expenditure by slashing jobs and have demanded an urgent meeting with Kraft's global management.




Tags: , 

Comment With Your Facebook or Yahoo! ID

Latest news

News on Capital Market

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Contact Us
Volunteer Program
Message from CEO

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Discussion Forum

Subscriber Agreement
Privacy Policy
Data Policy
Copyright Policy
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014