Cadbury Workers Resist Kraft Takeover
The Cadbury workers say that a takeover by Kraft (KFT) would saddle Cadbury with enormous debts, job losses and pay cuts required to meet its massive borrowing needs to finance the takeover.
"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," said Len McCluskey, Unite assistant general secretary.
"Cadbury is a great UK success story -- and it was and is not for sale. But suddenly, a hostile bid and swarming speculators has thrown its future, its investment plans and the jobs of thousands of workers here and in Ireland up in the air."Cadbury union leaders are contacting shareholders to urge them to reject Kraft's bid. They will take their concerns to the British parliament on Dec. 16. Cadbury was expected to give its formal response to Kraft's $16.3 billion hostile takeover offer for the company on Dec. 14. Meanwhile, it has been revealed that Kraft might make changes to its hostile bid to soothe anti-trust concerns among EU regulators. Cadbury stock has risen 0.7% to $51.40 in afternoon trading and Kraft has slid 0.1% to $26.70. Nestle (NSRGY), which is rumored to be interested in buying Cadbury, alongside Hershey (HSY) and Italian chocolate maker Ferrero, has added 1.6% at $48.50. Hershey has risen 1.6% to $35.90. -- Reported by Andrea Tse in New York
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