Monday, March 08, 2010

Kraft To Be Investigated

The City Takeover Panel is to investigate as to whether Kraft misled Cadbury investors wrt a promise to keep Cadbury's Somerdale factory open.

Kraft said on November 9 2009:

"Kraft Foods believes it will be in a position to continue to operate the Somerdale facility, which is currently planned to be closed, and invest in Bournville, thereby preserving UK manufacturing jobs."

After the deal was completed, Kraft said that the factory would close by 2011, losing 500 jobs.

Aside from allegedly misleading Cadbury, the promise unforgivably gave false hope to the workers at the plant.

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