Cadbury launches defence against hostile kraft bid
Dec 14 2009 by Jon Griffin, Birmingham Mail
CADBURY today launched its defence against the hostile £10 billion takeover bid by US predators Kraft – and accused the US giant of trying to buy the chocolate maker “on the cheap”.
CADBURY today launched its defence against the hostile £10 billion takeover bid by US predators Kraft – and accused the US giant of trying to buy the chocolate maker “on the cheap”.
Roger Carr, Cadbury chairman, cranked up the pressure with a warning to shareholders not to let Kraft “steal your company with its derisory offer”.
Roger Carr, Cadbury chairman, cranked up the pressure with a warning to shareholders not to let Kraft “steal your company with its derisory offer”.
The group’s defence was mounted amid reports that Cadbury is now in talks with US rival Hershey over a possible “white knight” offer.
The group’s defence was mounted amid reports that Cadbury is now in talks with US rival Hershey over a possible “white knight” offer.
An agreement with Hershey is viewed as a more acceptable potential deal for the UK company, with the group already making some Cadbury products under licence in the US.
An agreement with Hershey is viewed as a more acceptable potential deal for the UK company, with the group already making some Cadbury products under licence in the US.
The fight for the future of Cadbury intensified as union leaders warmly welcomed the Birmingham Mail’s campaign to keep the historic chocolate maker independent and safeguard 2,500 jobs at Bournville.
The fight for the future of Cadbury intensified as union leaders warmly welcomed the Birmingham Mail’s campaign to keep the historic chocolate maker independent and safeguard 2,500 jobs at Bournville.
Mail readers are being asked to sign up to a petition at www.welovecadbury.com to help save Cadbury from Kraft’s takeover bid.
Mail readers are being asked to sign up to a petition at www.welovecadbury.com to help save Cadbury from Kraft’s takeover bid.
Gerard Coyne, Unite regional secretary, said today: “Well done to the Mail for getting behind the fight to keep Cadbury independent. The workforce and Unite are delighted to have the backing of their paper and our community.
Gerard Coyne, Unite regional secretary, said today: “Well done to the Mail for getting behind the fight to keep Cadbury independent. The workforce and Unite are delighted to have the backing of their paper and our community.
“With the support of the people of the Midlands, we will see off this hostile bid and save Cadbury. It’s a great Birmingham and British success story and we want to keep it that way.”
“With the support of the people of the Midlands, we will see off this hostile bid and save Cadbury. It’s a great Birmingham and British success story and we want to keep it that way.”
Unite said the union would ask “some tough questions” if Hershey entered the bidding for the chocolate maker.
Unite said the union would ask “some tough questions” if Hershey entered the bidding for the chocolate maker.
A union spokeswoman said: “If new bidders do emerge, we will seek to raise with them the same concerns we raised with Kraft. What are their investment plans?
A union spokeswoman said: “If new bidders do emerge, we will seek to raise with them the same concerns we raised with Kraft. What are their investment plans?
“Will the company stay based in the UK? We want commitments in terms of jobs, pensions, and pay to stand for at least the next five years.”Unite renewed its call to Cadbury shareholders to reject the Kraft offer, warning that it would cost jobs in the long run. Investors must make a decision by January 5.
“Will the company stay based in the UK? We want commitments in terms of jobs, pensions, and pay to stand for at least the next five years.”Unite renewed its call to Cadbury shareholders to reject the Kraft offer, warning that it would cost jobs in the long run. Investors must make a decision by January 5.
Business Secretary Lord Mandelson has warned that the Government would oppose any buyer that fails to respect the historic confectioner’s traditions or was bidding purely for the sake of making a “fast buck.”
Business Secretary Lord Mandelson has warned that the Government would oppose any buyer that fails to respect the historic confectioner’s traditions or was bidding purely for the sake of making a “fast buck.”
Cadbury declined to comment on the reported discussions with Hershey, but confirmed expressions of interest by potential rival bidders.
Cadbury declined to comment on the reported discussions with Hershey, but confirmed expressions of interest by potential rival bidders.
Chairman Mr Carr said: “Kraft is trying to buy Cadbury on the cheap to provide much needed growth to their unattractive low-growth conglomerate business model. Don’t let Kraft steal your company with its derisory offer.”
Chairman Mr Carr said: “Kraft is trying to buy Cadbury on the cheap to provide much needed growth to their unattractive low-growth conglomerate business model. Don’t let Kraft steal your company with its derisory offer.”
Cadbury said today it was aiming for sales growth of five to seven per cent a year for the next four years and improved margins, while also seeking to please investors with double digit growth in shareholder payouts.
Cadbury said today it was aiming for sales growth of five to seven per cent a year for the next four years and improved margins, while also seeking to please investors with double digit growth in shareholder payouts.
The UK group has already lifted revenue guidance for the current financial year and said recent trading was in line with the upgraded expectations thanks to emerging market growth for chocolate sales and “excellent” performance across its candy range.
The UK group has already lifted revenue guidance for the current financial year and said recent trading was in line with the upgraded expectations thanks to emerging market growth for chocolate sales and “excellent” performance across its candy range.
It is also hoping to slash its supplier network as part of the plan to deliver better figures.
It is also hoping to slash its supplier network as part of the plan to deliver better figures.
