Cadbury's board of directors has now advised shareholders to accept Kraft's offer for the company.
The offer wasn't solicited, wasn't wanted, is likely to lead to redundancies and the transfer abroad of production — and more than that, Kraft doesn't actually have the money to pay for it: the corporation will have to borrow £7bn ($11.5bn) to finance the deal.
Irene Rosenfeld, chairman and CEO of Kraft Foods, announced: "We have great respect for Cadbury's brands, heritage and people. We believe they will thrive as part of Kraft Foods."
This implies that Cadbury wasn't already thriving (and that Kraft is, which its inability to pay for what it's putting on the sweetshop counter underlines). But Cadbury was doing fine: despite the recession, the company reported a very respectable increase in profits in 2008 and a promising outlook, although there were already plans to close its Keynsham factory as part of a cost-cutting exercise. (Kraft has apparently promised to save the factory, but not in writing; it is notable that Kraft is presently closing some of its own factories.)
Why are corporations — and particularly those that don't actually have the available funds — allowed to make hostile takeover bids? Can no-one control these corporate pit-bulls?
Isn't it about time western governments, particularly those in the UK and USA, did something about corporate greed and obesity? About showing some consideration for employees whose labour goes a long way towards bringing in the profits? Directors of bloated corporations care only about profits and units, whether products, machinery or employees: they're all numbers.
The Cadbury brothers were famous for the treatment of their employees. Right now, they must be spinning in their graves.
UPDATE, 9 February
The offer wasn't solicited, wasn't wanted, is likely to lead to redundancies and the transfer abroad of production — and more than that, Kraft doesn't actually have the money to pay for it: the corporation will have to borrow £7bn ($11.5bn) to finance the deal.
Irene Rosenfeld, chairman and CEO of Kraft Foods, announced: "We have great respect for Cadbury's brands, heritage and people. We believe they will thrive as part of Kraft Foods."
This implies that Cadbury wasn't already thriving (and that Kraft is, which its inability to pay for what it's putting on the sweetshop counter underlines). But Cadbury was doing fine: despite the recession, the company reported a very respectable increase in profits in 2008 and a promising outlook, although there were already plans to close its Keynsham factory as part of a cost-cutting exercise. (Kraft has apparently promised to save the factory, but not in writing; it is notable that Kraft is presently closing some of its own factories.)
Why are corporations — and particularly those that don't actually have the available funds — allowed to make hostile takeover bids? Can no-one control these corporate pit-bulls?
Isn't it about time western governments, particularly those in the UK and USA, did something about corporate greed and obesity? About showing some consideration for employees whose labour goes a long way towards bringing in the profits? Directors of bloated corporations care only about profits and units, whether products, machinery or employees: they're all numbers.
The Cadbury brothers were famous for the treatment of their employees. Right now, they must be spinning in their graves.
UPDATE, 9 February
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