Kraft faces probe on Cadbury deal: Report

In January, Kraft said it would take over Cadbury in a cash-and-stock deal worth about 11.9 billion pounds.Attributing to people familiar with the matter, The Wall Street Journal reported that UK regulators are investigating whether Kraft misled employees and investors during its battle to take over Cadbury.

The Panel on Takeovers and Mergers is looking into comments Kraft executives made during the contentious takeover battle about Cadbury's Somerdale candy factory in Keynsham, the report noted.

According to the publication, Kraft officials had repeatedly said they believed the factory could be kept open. While Cadbury had said it would close the plant and move Somerdale's 500 jobs to Poland.

Last month, when it became clear that Kraft had won the takeover battle, the company reversed course and said it would close the plant by 2011. The daily said that Kraft executives would be called later this month to give evidence in front of a parliamentary committee, which is holding hearings on the takeover.

DH Newsletter Privacy Policy Get the top news in your inbox
GET IT
Comments (+)