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19/01/2010
American Firm Buys Cadbury
Directors at UK chocolate producer Cadbury have approved a £11.5bn ($18.9bn) buy-out deal by American food firm Kraft.
Kraft said the deal would create a "global confectionery leader".
However, fears have been raised over jobs at Cadbury's Bournville and Somerdale manufacturing sites.
Cadbury shareholders have been advised to accept the new offer of 840 pence a share.
They have until 2 February to decide on the deal, which will see dividends of 500 pence paid in cash, with the rest made up of Kraft shares.
"We believe the offer represents good value for Cadbury shareholders... and will now work with the Kraft Foods' management to ensure the continued success and growth of the business," said Cadbury's Chief Executive Roger Carr.
Chairman and chief executive of Kraft Foods Irene Rosenfeld said the firm has a "great respect for Cadbury's brands, heritage and people".
Kraft's previous bid of £10.5bn was rejected by Cadbury chairman Roger Carr, who accused the US firm of attempting to make an offer "on the cheap".
Shareholders are expected to back the latest bid.
Unions have said workers are concerned about potential jobs cuts.
Kraft has failed to provide any assurances to Cadbury employees. Staffing reductions are expected to go ahead at the firm's Uxbridge headquarters.
Jennie Formby from the Unite union told the BBC: "We are concerned about the levels of debt that Kraft has.
"The sad truth is that when they have to pay down that debt, the soft option is jobs and conditions.
"When you have to make cost savings of the magnitude they will need to make, you have to ask where those cost savings will be made."
(PR/BMcC)
Kraft said the deal would create a "global confectionery leader".
However, fears have been raised over jobs at Cadbury's Bournville and Somerdale manufacturing sites.
Cadbury shareholders have been advised to accept the new offer of 840 pence a share.
They have until 2 February to decide on the deal, which will see dividends of 500 pence paid in cash, with the rest made up of Kraft shares.
"We believe the offer represents good value for Cadbury shareholders... and will now work with the Kraft Foods' management to ensure the continued success and growth of the business," said Cadbury's Chief Executive Roger Carr.
Chairman and chief executive of Kraft Foods Irene Rosenfeld said the firm has a "great respect for Cadbury's brands, heritage and people".
Kraft's previous bid of £10.5bn was rejected by Cadbury chairman Roger Carr, who accused the US firm of attempting to make an offer "on the cheap".
Shareholders are expected to back the latest bid.
Unions have said workers are concerned about potential jobs cuts.
Kraft has failed to provide any assurances to Cadbury employees. Staffing reductions are expected to go ahead at the firm's Uxbridge headquarters.
Jennie Formby from the Unite union told the BBC: "We are concerned about the levels of debt that Kraft has.
"The sad truth is that when they have to pay down that debt, the soft option is jobs and conditions.
"When you have to make cost savings of the magnitude they will need to make, you have to ask where those cost savings will be made."
(PR/BMcC)
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14 December 2009
Cadbury Defends Takeover Refusal
Chocolatier giant Cadbury has claimed an international food conglomerate attempted to buy it "on the cheap". Cadbury rejected Kraft Foods's hostile takeover bid last month, describing it as "derisory".
Cadbury Defends Takeover Refusal
Chocolatier giant Cadbury has claimed an international food conglomerate attempted to buy it "on the cheap". Cadbury rejected Kraft Foods's hostile takeover bid last month, describing it as "derisory".
10 February 2010
Kraft Confirms Cadbury Closure
Business Secretary Lord Mandelson has attacked Kraft Foods over it decision to close a Bristol-based Cadbury factory. Kraft bought the chocolate manufacturer earlier this month, having pledged its commitment to the British brand.
Kraft Confirms Cadbury Closure
Business Secretary Lord Mandelson has attacked Kraft Foods over it decision to close a Bristol-based Cadbury factory. Kraft bought the chocolate manufacturer earlier this month, having pledged its commitment to the British brand.
03 February 2010
Mandelson 'Disappointed' In Kraft
Kraft Foods' failure to provide job assurances to Cadbury's UK staff has "disappointed" the Business Secretary. Lord Mandelson said the US company would not commit itself to managing the chocolate brands in Britain. He spoke after holding talks with Kraft Chief Executive Irene Rosenfeld.
Mandelson 'Disappointed' In Kraft
Kraft Foods' failure to provide job assurances to Cadbury's UK staff has "disappointed" the Business Secretary. Lord Mandelson said the US company would not commit itself to managing the chocolate brands in Britain. He spoke after holding talks with Kraft Chief Executive Irene Rosenfeld.
02 February 2010
Cadbury Deal Closure Looms
Cadbury workers have called on the government to intervene in the takeover bid by a US foods firm. Shareholder of the chocolate produce have until lunchtime today to vote on a £11.5bn ($18.9bn) offer put forward by Kraft. Union members are concerned by the lack of guarantees over job security. Unite has lobbied ministers to back employee retention.
Cadbury Deal Closure Looms
Cadbury workers have called on the government to intervene in the takeover bid by a US foods firm. Shareholder of the chocolate produce have until lunchtime today to vote on a £11.5bn ($18.9bn) offer put forward by Kraft. Union members are concerned by the lack of guarantees over job security. Unite has lobbied ministers to back employee retention.
02 July 2003
Foods company to help fight obesity
In response to rising obesity rates around the world, Kraft Foods Inc. said today it will initiate a new series of steps to further strengthen the alignment of its products and marketing practices with societal needs. “The rise in obesity is a complex public health challenge of global proportions,” said Betsy D. Holden, Co-CEO of Kraft Foods.
Foods company to help fight obesity
In response to rising obesity rates around the world, Kraft Foods Inc. said today it will initiate a new series of steps to further strengthen the alignment of its products and marketing practices with societal needs. “The rise in obesity is a complex public health challenge of global proportions,” said Betsy D. Holden, Co-CEO of Kraft Foods.
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