UK Politics

Liberal Democratic Party: Galling that RBS should fund Cadbury takeover says Cable

Press Release   •   Jan 21, 2010 10:40 GMT

Liberal Democrat Shadow Chancellor, Vince Cable has today written to Lord Mandelson about the takeover of Cadbury by US company Kraft being part financed by the Royal Bank of Scotland.

Commenting, Vince Cable said:

“Cadbury is a national institution which provides thousands of jobs in the UK and there is a real danger its takeover by Kraft will lead to job losses.

“It is particularly galling then that state-owned RBS should part fund this takeover when it is clearly not in the interests of the UK economy.

“This takeover also raises broader questions about how hedge funds, out to make a quick buck, can destabilise even the most established companies.

“We have seen Cadbury shares rapidly bought up by hedge funds that are keen to accept the Kraft takeover regardless of whether it is in the long-term interests of the company.

“As the City minister Lord Myners himself notes, it is becoming too easy for good British companies to be taken over by foreign predators.”