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.