Taxpayers should not fund Cadbury takeover say Lib Dems

6.42.58pm GMT Fri 22nd Jan 2010

Local Liberal Democrats are fuming about the takeover of Cadbury by US company Kraft being part financed by the state owned Royal Bank of Scotland .

Commenting, Jonathan Chatfield the Liberal Democrat's prospective parliamentary candidate for South East Cambridgeshire said:

"There is a real danger based on Kraft's treatment of Terrys and the comments of the Cadbury chairman that the Kraft takeover will lead to hundreds if not thousands of job losses in the UK .

"It is particularly galling then that state-owned RBS should part fund this takeover when it is clearly not in the interests of the UK economy.

"This takeover also raises broader questions about how hedge funds, out to make a quick buck, can destabilise even the most established companies.

"We have seen Cadbury shares rapidly bought up by hedge funds that are keen to accept the Kraft takeover regardless of whether it is in the long-term interests of the company.

"The City minister Lord Myners himself notes that it is becoming too easy for good British companies to be taken over by foreign predators.

"It is also interesting how quiet the Conservatives have been on this. No doubt they do not wish to upset their big city backers.

"Liberal Democrat leader Nick Clegg raised this during Wednesday's Prime Minister's Questions and our shadow chancellor, Vince Cable has written to Lord Mandelson to ask him to intervene."