Kraft Dairy Milk?

I don’t know about anybody else, but I am very disappointed to hear that the Board of Cadbury (my favourite chocolate!) have now recommended that shareholders accept a takeover by Kraft. MPs were sent an email by Alex Cole the “Global Corporate Affairs Director” of Cadbury who tried to explain the decision that “the Board has a clear legal duty to secure value for shareholders”. The fact that this will lead to job cuts and unemployment for Cadbury employees clearly isn’t a consideration.
Nick Clegg raised the issue of the takeover at PMQs. Kraft are borrowing money from the Royal Bank of Scotland to fund the takeover, so taxpayers’ money is being used to buy a British company and then to put people out of work.
Nick said
“When British taxpayers bailed out the banks, they would never have believed that their money would now be used to put British people out of work, isn’t that just plain wrong?”
Personally I think it stinks!

2 responses to “Kraft Dairy Milk?

  1. I find the whole situaiton deeply worrying and can’t believe that there seem to be no checks and balances in place. Where is the “joined-up thinking”?

    • Hi Ruth

      I couldn’t agree more with your comments, and I think that the real problem is the duty placed on the board to “secure value for shareholders”. Personally I would like to see a change in the regulations, so that more weight is placed on the duty to the company and its employees, not just the best price for the shareholders.
      As far as the bank lending Kraft money to buy the company and then make workers redundant, it simply beggars belief that we, the taxpayers, (including Cadbury workers!) are effectively lending a company money to sack workers, who are then themselves reliant on the taxpayers while they are unemployed.

      Kind regards

      John Leech

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