Global Processing

UK Lawmakers Criticize Kraft''s Cadbury Deal

May 23, 2011

The Associated Press reports, British lawmakers said Monday they still have "significant concerns" about the takeover of chocolate maker Cadbury by Kraft Foods Inc. The Business, Innovation and Skills Select Committee also strongly criticized Kraft''s chief executive Irene Rosenfeld for refusing to appear before parliamentary hearings into the takeover. The report -- titled "Is Kraft working for Cadbury?" -- said Kraft''s attitude to the inquiry "steered close to a contempt" of the House of Commons. It also chastised the U.S. food group for failing to accept criticism from Britain''s takeover market regulator of its U-turn on promises to keep open a British factory. The committee said it remained concerned on two fronts: Kraft''s commitment to British Cadbury brands given strategic decisions are being made from Kraft''s European headquarters in Zurich, and the company''s apparent lack of consultation with union leaders about pay and conditions for workers.