UPDATE: Kraft Foods To Focus On Integration, Repairing Damage
02 Février 2010 - 6:34PM
Dow Jones News
With Kraft Foods Inc's (KFT) GBP11.9 billion purchase of Cadbury
PLC (CBY) now complete, the U.S. food giant's focus will shift to
integrating the U.K. confectioner and repairing the damage caused
by four months of acrimonious battle.
Kraft Foods Tuesday declared its 850 pence a share bid for
Cadbury unconditional after securing acceptances from shareholders
representing 71.73%, or 987,684,041, of Cadbury's shares.
"The combination of Kraft Foods and Cadbury creates a global
powerhouse in snacks, confectionery and quick meals. Together we
have impressive global reach and an unrivalled portfolio of iconic
brands, with tremendous growth potential. I warmly welcome Cadbury
employees into the Kraft Foods family and look forward to meeting
many of them in the days and weeks ahead. This combined company has
a phenomenal future, and I firmly believe it will deliver
outstanding returns to our shareholders," said Kraft's Chief
Executive Irene Rosenfeld.
The deadline for Cadbury shareholders to accept Kraft's offer
passed at 1300 GMT Tuesday. With a recommendation from Cadbury's
board already secured, Kraft's success was never in doubt.
The announcement brings to a close both a five-month bid process
and 186 years of independence for the maker of Dairy Milk and
Trident gum.
Kraft's CEO Irene Rosenfeld is in the country to "pick up the
keys" Tuesday and her first task will be to meet the U.K.
government's business minister Peter Mandelson to ease his concerns
over U.K. jobs.
The takeover has attracted much criticism in the U.K., not least
from Mandelson himself, who warned Kraft late last year against
trying to make a "quick buck" on Cadbury and said the buyout would
have to respect the company's "work force and the heritage and
quality."
Trade union Unite has campaigned against the deal for the past
two months, warning that Kraft's high debt levels leave thousands
of U.K. jobs at risk. Cadbury employs 5,600 staff in the U.K. and
another 40,000 around the world.
The campaign continued in London Tuesday, as workers urged the
U.K. government to ensure Kraft's pledges to Cadbury's workforce
are more than just "warm words."
Kraft CEO Rosenfeld has already promised to keep the Somerdale
factory near Bristol open despite Cadbury's previous management
earmarking it for closure. She has also said Kraft will be a "net
importer" of jobs to the U.K.
"We understand the strength of feeling for this company across
the U.K.," Mandelson's Department Of Business, Innovation and
Skills said, "however the decision on the Kraft bid is a matter for
the Cadbury shareholders."
There will undoubtedly be redundancies however, most likely at
Cadbury's new head office on the outskirts of London.
Kraft is targeting GBP675 million of synergies from the deal and
combining regional offices is an obvious place to start.
Reports suggest Rosenfeld will be meeting Cadbury staff in
London later this week. When she does, she may have a tough time
persuading them of the benefits of Kraft's buyout.
Cadbury workers will have a dim view of their new employers if
they've been listening to Cadbury's Chairman Roger Carr and Chief
Executive Todd Stitzer in recent months.
Until deciding to recommend Kraft's offer on Jan. 19, Carr had
repeatedly criticized Kraft's "low-growth conglomerate" model and
underperforming management to all who would listen. Stitzer chipped
in with criticism of his own, describing the U.S. maker of
processed cheese as a "lumbering corporate monolith."
While none of this was enough to stop them recommending a bid,
it may well have had an effect on Cadbury employees worldwide.
-By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278;
michael.carolan@dowjones.com
Cadbury Plc Ads - New Cadbury Plc Ads (NYSE:CBY)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Cadbury Plc Ads - New Cadbury Plc Ads (NYSE:CBY)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024