Cadbury-Kraft: United brands, divided shareholders

Kraft's Cadbury buy has divided opinion

The £11.9bn sale of Cadbury to Kraft has divided opinion among its principal investors, including Neptune Investment Management, Legal & General and Standard Life, with some complaining that the sale still badly undervalues the British confectionary icon.

Neptune described the offer “as unappealing at best” while L&G said the offer “does not reflect the value of the company”. However, Standard Life reneged on its decision to hold out for £9 per share and indicated it now would vote in favour of the takeover. Ratings agency Fitch cut the credit ratings of both Cadbury and Kraft to the lowest level investment grade, BBB-. Other agencies are expected to follow suit.