Cadburys Job Losses

[CookBoy]

What does everyone think about the take over bid from Kraft?

The Cadburys board have rejected the latest offer despite it showing a 30% increase on shares this week. The facilty at Somerdale is due to be closed and Cadburys plan is to invest the money into the facility at Bourneville. If they excepted the offer Kraft have stated that they would not want to close the Somerdale facility, both saving and creating additional jobs.

Will unemployment rising this surely must be a good idea and would make them part of a bigger recession proof company. Any views?

[Piggy Al]

The problem with being bought out is the parent company can always change their mind and close places at a later date.

If I were Cadburys I would try and strike a deal up with the gov to help keep the other site going. Better that than paying out more benefits. Besides they could always go the way of the banks and get an interest free loan and invest it in gov bonds.

[SalinaA]

Its a bit scary in some respect isn't it?

I mean in some respect surely they could just move the whole thing to the US and more job losses could then occur?

I found this article on the BBc website showing that thier profits were up this year - http://news.bbc.co.uk/1/hi/business/8173794.stm - based on this why would they then need to be in a take over? I am confused - any that can simplify this would be most welcome hehe!

I didnt think they were in trouble????

[P&A Services Ltd]

There not in trouble!

The proposed plant closure is just down to cost cutting in the name of higher profits, the place is simply more profitable closed!

As for the Kraft take over bid, it was only refused because they know they can get more! The bid was valuing the shares higher then there market value but any bid to buy out a large plc pushes the shares up and the bids have to account for that, so although Kraft made what looked like a great bid, in actual fact it wasn't to great!

If they are serious about buying them out then expect a higher bid soon! (if they can afford it that is).

Personally i wouldn't like yet another British company to lost to foreign money! It's happening far to often now!

[SalinaA]

Thanks for the explanation there not great at these things hehe!

I suppose we just have to wait and see what happens now.... Hopefully as you say they won't sell to the Americans - they should stay in British hands! Maybe as Piggy Al says they should strrike up a government deal or something instead hehe!

[Aerobubble2009]

Can you imagine aswell- if Caburys went to the Americans they would probably change the names of everything, like snickers were Marathon bars and Musketeer bars look strangly like a milky way! Suddenly the market will be infiltrated with crazy packaging and new names!!

[SalinaA]

Hehe could you imagine that?

I wonder if it would go down as well though? If they did change all the names I mean? I mean we are creatures of habit and like what we know in most cases dont you think?

[cakekid]

Yea it I think it would be really odd if they were to change all the names!!

Like you said Salina - not many are a great fan of change.

Cadburys trading update will be released next week - I think this is when we'll be able to see what's going on and whether they have reached their sales targets.

I read something really interesting about them as well - The UK and Ireland account for almost half of Cadbury's global sales! That's huge considering how small both Ireland and the UK are.

Really shows how unhealthy this nation is...

[SalinaA]

Either is shows that or how little sales they make from outside the UK???? Hmmmm! I suppose we will have to wait and see what the outcome of this report is I guess!

What do you guys think will happen?

If the Americans did get to take over do you think they would close it all down here and move the whole production to the US? How many jobs would be lost as a result of this???

[cakekid]

The cost of moving the business might affect their pocket more though. As I said previously The UK and Ireland account for more than half of the sales, therefore they would need to ship more than half the goods over at a cost

Might also mean that chocolate might get pricier...

[SalinaA]

The cost of moving the business might affect their pocket more though. As I said previously The UK and Ireland account for more than half of the sales, therefore they would need to ship more than half the goods over at a cost

Might also mean that chocolate might get pricier...

Haha how did I miss that point! Very clever though - if we make up more than half of thier sales then naturally (hopefully) if there were a US takeover they would be inclined to stay here and keep it all the same to keep all of us happy hehe!

Imagine if someone had the job to come in and change it all! Grrrr!

[cakekid]

That's the thing if it is sold, production would might be moved over seas too - what jobs would that leave the workers hopefully like you said even if it is sold production will continue over here.

Speaking of Cadbury's has anyone ever been to the Factory? MMM...

[SalinaA]

That's the thing if it is sold, production would might be moved over seas too - what jobs would that leave the workers hopefully like you said even if it is sold production will continue over here.

Speaking of Cadbury's has anyone ever been to the Factory? MMM...

Noooo Where is the factory hehe.....

[cakekid]

I think it might be in birmingham!! that's so farrrrrrrrrrrrrrr !

[SalinaA]

I have been up there before and didn't think it was more than an hour away from me!

Imagine having a job in a place like that! First I would get fat and then end up sick of chocolate eventually lol! So not a good job for me! Making chocolate is not something that I think I will be good at hhee! I would rather be able to eat it in the long term than get stuffed on it and end up hating which is the case with most food related jobs that I have ever had! For example I hate Haribo - can;t stand them because this one company I used to work for had unlimited supplies of Haribo lying around all the time! After a year of eating them constantly I can no longer eat one without feeling a bit ill! Good job though - keeps me away from some sweets lol

P.s. Founbf the link for it http://www.cadburyworld.co.uk/CadburyWo ... World.aspx