Cadbury shareholder files lawsuit over dismissal of Kraft offer
Cadbury is facing a lawsuit from one of their shareholders in the wake of their dismissive approach to the informal offer from Kraft.
Steward International Enhanced Index Fund, a US mutual fund holding 6,720 Cadbury shares, contends that the Cadbury Board has not acted in the best interests of shareholders by failing to “properly consider” the A$19.6b offer.
“Cadbury shareholders stand to lose out massively if the Cadbury board continues to refuse to negotiate a transaction with Kraft,” the lawsuit argued. “But Cadbury’s board stands to lose its lavish compensation and positions of power if Cadbury is sold.”
Cadbury has told just-food that they believe the complaint to be “entirely without merit”.
The confectioner is, after all, yet to receive a formal offer from Kraft with the U.K. Takeovers Panel last week ruling that Kraft must make a formal bid by November 9 or leave the confectioner alone for at least six months.