by Sarah Hills FoodBizDaily.com London
December 11 2009 - Cadbury workers are to launch a bid to keep the UK confectioner independent and fend off a hostile bid by Kraft.
The workers from the UK and Ireland, along with their union, Unite, will launch the campaign on Tuesday with backing from some MPs.
Unite is also contacting all Cadbury shareholders to urge them to reject Kraft's bid.
The union said it will highlight what it claims to be “Kraft's plan to pay for the company through massive borrowing, Kraft’s poor record in takeovers and falling share value and the union's concerns that Kraft will move all investment decisions out of the UK and into the Kraft boardroom overseas”.
The Keep Cadbury Independent campaign will also be taken to parliament on Wednesday to alert MPs and ministers to their concerns.
Len McCluskey, Unite assistant general secretary, said: “There is serious and growing worry, stretching from the shop floor to the wiser heads on the City trading floor, about what the Kraft offer and any ensuing bidding war could mean for Cadbury.
“We must see off the Kraft bid and any others which do not have this company and its workforce's best interests at heart. And we must persuade our government and the regulators to act fast so that healthy UK businesses cannot again fall prey to the finance vultures."
Cadbury is to post to shareholders its formal response to Kraft’s takeover offer on Monday, when it will also host a presentation in London for analysts and investors on the same date, which will include its regular pre-close trading update.
Kraft’s offer values each Cadbury share at 713 pence and values the entire issued and to-be-issued share capital of Cadbury at approximately £10.1 billion.
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Cadbury plc
Address: 25 Berkeley Square London, ENG W1J 6HB United Kingdom
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About Cadbury plc
Cadbury plc, formerly Cadbury Schweppes plc is a confectionery company. The Company is engaged in the confectionery business, with participation across the three categories of chocolate, gum and candy. The Company’s seven business units are Britain and Ireland, Middle East and Africa, North America, South America, Europe, Asia, and Pacific. Cadbury plc has developed a global portfolio of brands. The Company’s brands in chocolate are Cadbury Dairy Milk, Creme Egg, Flake, and Green & Black’s. Trident is the Company’s gum brand. Other gum brands include Hollywood, Stimorol, Dentyne, Clorets and Bubbaloo. Halls is a candy brand of the Company. Other brands are Maynards, The Natural Confectionery Co. and Cadbury Eclairs. On May 7, 2008, it completed the demerger of the Americas Beverages business, which became Dr Pepper Snapple Group, Inc. (DPS) following the demerger