In the backdrop of U.S.-based Kraft Foods pursuing a hostile bid for British entity Cadbury, U.K. Secretary of State for Business, Innovation and Skills Peter Mandelson on Tuesday said the government will not intervene to halt acquisitions.
“No... we do not intervene to stop for bids and takeovers and changes,” Mr. Mandelson told reporters at a CII event here, while responding to a query on whether the U.K. would intervene to stop Kraft’s attempt to takeover Cadbury.
Cadbury, the maker of Dairy Milk chocolate, has rejected a 9.8 billion pounds takeover bid from Kraft last month, saying the offer undervalues the company.
“What I have said is that any change needs fully to respect the heritage legacy of Cadbury company, its business ethics, its excellent products...,” Mr. Mandelson said.
Earlier this month, Cadbury asked its shareholders to reject the Kraft offer.
“Kraft is trying to buy Cadbury on the cheap to provide much needed growth to their unattractive low-growth conglomerate business model.
“Don’t let Kraft steal your company with its derisory offer,” Cadbury’s Chairman Roger Carr had said in a circular to the shareholders.
On the other hand, Kraft has maintained that its bid represents a substantial premium for the British company.