Cadbury's Has Sold Out To US Bid

Cadbury's chairman has confirmed to the BBC that job losses are an "inevitability" at the company after its takeover by US giant Kraft Foods. Without estimating how many positions would be affected, Roger Carr said jobs would go at Cadbury's head office in Uxbridge, London. However, he added that he saw Kraft both supporting and developing Cadbury's UK production facilities. Mr Carr was speaking after Cadbury's board backed a £11.5bn bid from Kraft. Prime Minister Gordon Brown said the government was "determined" to ensure that Cadbury jobs were secure. "We are determined that the levels of investment that take place in Cadbury in the United Kingdom are maintained and we are determined that, at a time when people are worried about their jobs, that jobs in Cadbury can be secure," he said.

Shareholder vote

Cadbury's directors have advised the firm's shareholders to accept the offer, which represents 840 pence per share. Investors will also get a 10p per share dividend. Shareholders now have until 2 February to back the deal which, led by Cadbury's large institutional investors, is expected to be a formality. Kraft's offer consists of 500 pence in cash, with the rest made up of Kraft shares. The US group will borrow £7bn ($11.5bn) to finance the deal. The announcement that Kraft and Cadbury had reached agreement on a takeover was made on Tuesday after Kraft increased its previous hostile offer of $10.5bn, which Cadbury had rejected.

'Bitter sweet'

In an interview with BBC business editor Robert Peston, Mr Carr admitted that the decision to accept Kraft's improved offer was a "bittersweet moment". However, he said the deal represented good value for Cadbury shareholders, which was what he was paid to focus on. Although "there will clearly be some cost savings they have to make", Mr Carr said he hoped Kraft would take on some of Cadbury's senior team. "People are the key to successful businesses, they need to be cared for, and I'm sure Kraft understands that," he said. "I shall miss not being chairman of Cadbury, but I'm sure those that own it now will develop it as a strong company, respecting its British routes, but growing it as a global company."

Cost cuts

Kraft has already said it expects to achieve "meaningful cost savings" as a result of the merger. While it has given no specific assurances over the future of 4,500 UK jobs, it says it wants to invest in Cadbury's Bournville site in Birmingham, and maintain production at Somerdale, near Bristol, also known as Keynsham. David Cumming, head of UK equities at Cadbury shareholder Standard Life, said that he would be backing the takeover. "I won't go against the view of Cadbury's management," he told the BBC. "Kraft are getting a good deal. It's sad that Cadbury is gone, but business is business." Irene Rosenfeld, the chairman and chief executive of Kraft Foods, said the deal was good news for shareholders and staff. "We have great respect for Cadbury's brands, heritage and people," she said. "We believe they will thrive as part of Kraft Foods."

Kraft-Founded in Illinois in 1903 Vs Cadbury-Founded in Birmingham,UK in 1824

LUKE PARKER, 20, from West Heath

Mr Parker works on the Cadbury Roses brand. He said: "This is the last industry Britain has got. It's a mistake. A really big mistake, but it's nothing to do with us - it's money and greed. "At the end of the day, jobs are going to go. All people inside are talking about is selling their shares."

DAVIC DUSAN, 84, from Kings Norton

Mr Dusan worked at the Bournville factory for 35 years from 1949, after arriving in England from the former Yugoslavia. He was employed in a variety of roles from a cleaner to a shift supervisor. The firm paid for his son Andrew's studies. He said: "It's a disgrace. Unbelievable. It's British heritage and history, and the Cadbury family - there's nothing to touch them. "They are not a factory, they are a family. I am sad, and my family is sad."

ALAN GARDNER, 70, from Bournville

Mr Gardner has family connections to Cadbury going back to 1908 when his grandfather, Arthur Robins, began working there. Since then, his father-in-law and mother have both worked at the factory. He said: "I just think it's so sad that such a successful company is sold down the river. "There's a strong emotional link, I was born and brought up with it. The Cadbury family built the village (Bournville) so that the people of Birmingham could have better health. A very sad day."

KIRAN AMBEKAR, 35, Cadbury IT contractor

Mr Ambekar came to work for Cadbury from Mumbai, India, and is worried how the Kraft bid will affect his job. He said: "I remember Cadbury as a name growing up. It hurts - it's a heritage company for the country. "The question is, how long am I going to stay? Everyone is worried about the future, even us contractors."

ALAN SHRIMPTON, 62, from Redditch

Both Mr Shrimpton's father and grandfather worked at Cadbury. He lives in Redditch but gives history tours around Bournville. He said: "We are talking about a firm that has been in Birmingham for 186 years. This is a brand we have grown up with and loved. "It's another iconic British firm going to American hands. It does seem a shame that we cannot run our own businesses anymore. "I am sorry but on the other hand...it's entirely possible that Kraft will grow the business. There's a market for our chocolate in America. It could be good news."(my view)-Your fucking kidding me,when i read this this morning i was sick(actually vomiting)i know that sounds stupid,but it sickens me to my core,OUR country has been and is continuelly being invaded by america...by the take over of companies and THIER culture.....don't get me wrong....i like america BUT this is our final instution the was not taken over.......AND NOW IT HAS,to make it worse,the people in charge of cadbury HAS sold us all down the river,i hoped that BEING english that they would NEVER sell out.....how could cadbury do this to us all....their coutry to!cadbury has REAL chocolate in...which is the original ingrediant....but now as we know kraft waters down and introduce a fake tasting ingrediant into their SO-CALLED-REAL CHOCHOLATE to fake the senses and the fake ingrediant produces headaches and vomiting......THIS IS THE END OF ENGLAND YOU GREEDY PARASITES..i'm sorry if there errors in "my view" i'm so upset and angy-so do not judge me!