UK Takeover Panel: criticizes Kraft Foods over Cadbury

London / UK. (tp) The Panel on Takeovers and Mergers (PTM) of the United Kingdom criticized Kraft Foods Inc. over its purchase of Cadbury PLC. The confusion comes after Cadbury had indicated that its Somerdale facility would close. Kraft then indicated last October that Somerdale facility would continue but then after completing the acquistion of Cadbury, Kraft indciated that Somerdale would still shut. It seems that the slip caused disagreement within Lazard, who advised Kraft on the bid with some members of the Lazard team upset enough to withdraw from the takeover process. The Takeover Panel said that Lazard should have made further enquiries but declined to criticise Lazard further because Kraft was deemed to have the primary responsibility. Takeover Panel indicated that Kraft should have taken an opportunity to clarify the position during talks in had with the Cadbury management on 18/19 January.
Info: «Cadbury PLC – Criticism of Kraft Foods Inc.» (PDF, six pages, 24 KB); statement from the Panel on Takeovers and Mergers of the United Kingdom.

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