Sarah Carr, Liberal Democrat Parliamentary Candidate for Hereford and South Herefordshire, wonders why state bank was involved in Cadbury buyout (From Hereford Times)

Sarah Carr, Liberal Democrat Parliamentary Candidate for Hereford and South Herefordshire, wonders why state bank was involved in Cadbury buyout

8:00am Tuesday 9th February 2010

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I AM very concerned about the takeover of Cadbury by Kraft Foods. Cadbury is a national institution which provides thousands of jobs in the UK including more than 100 in Herefordshire.

Kraft will borrow £7 billion in order to purchase Cadbury, partly fromthe Royal Bank of Scotland.

It seems perverse that a state-owned bank, funded by taxpayers, should be part funding a takeover of a British company which will likely put jobs at risk and hurt the UK economy.

Whilst it is for shareholders to accept or reject offers to purchase their shares, Cadbury shares have been rapidly bought up by hedge funds that are keen to accept the Kraft offer, regardless of whether it is in the long-terminterests of the company. The Liberal Democrat shadow chancellor, Vince Cable, has therefore written to the Government, raising our concerns on the involvement of RBS and seeking a review of the wider issues of share ownership and corporate governance.

My Liberal Democrat colleagues and I will continue to monitor events at Cadbury as they unfold.

We need assurances fromKraft that it will protect jobs, products and brands, as well as the vital heritage that Cadbury’s has in our region.

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