Tuesday newspaper round-up: Cadbury agrees Kraft takeover

19th Jan 2010 06:20

The iconic British chocolate manufacturer Cadbury fell last night to an £11.7bn takeover by the US food conglomerate Kraft, the Times reports.The deal, struck after hours of negotiations, brings to a conclusion one of the most fiercely contested takeover battles the City has seen in recent years. It also ends a proud history for Cadbury as an independent company.Under the deal that Roger Carr, Cadbury's chairman, has agreed to recommend to shareholders, Kraft will pay 840p for each Cadbury share and agree to pay a 10p-per-share dividend, making 850p in total.More than 400 of Britain's senior investors, including hedge fund managers, pension fund investors and private bankers, flocked to Goldman Sach's Fleet Street office yesterday to kneel at the feet of Mammon's oracles and hear how they reckon money can be made in 2010. The Goldman annual global strategy conference was so oversubscribed that delegates spilt into three overflow rooms and had to watch proceedings on video screens. The bank's record in correctly predicting the remarkable stock market bounce of last year has won it new followers, with many more delegates than a year ago, the Times reports.Meanwhile, Britain will turn in stronger growth than any other major economy next year, Goldman Sachs has declared, predicting a significantly stronger-than-expected recovery in the coming years. The investment bank said that the pound's 25pc depreciation over the course of the crisis would help boost exports, and broader economic growth, and turn the economy around, the Telegraph reports.Cabin crew at British Airways are to vote on a fresh ballot for industrial action next week in a move that could leave passengers facing strike action over Easter.The airline narrowly avoided disruption over the Christmas holidays after legal action prevented planned strikes by flight attendants, but trade union bosses have now called another ballot that could see walkouts during the first week of April, the Independent reports.The Financial Services Authority (FSA) was examining dramatic movements in International Power's share price last night after the FTSE 100 energy company abruptly broke off talks with GDF Suez about a possible tie-up. More than £650m was wiped off the value of International Power after the two companies were forced to issue statements confirming speculation that they had been in talks about a possible partnership deal, but that those discussions had now ended, the Times reports. Alistair Darling will order ministers this week to start work on the most swingeing public spending review in a generation, as officials acknowledged that some departments could see cuts of about 16 per cent over three years. The chancellor wants to use his pre-election Budget to show voters that Labour is serious about attacking the £178bn deficit, in a move which might reassure the markets but concern those in the Labour party anxious to avoid discussing cuts, the FT reports.A series of new government regulations could cost businesses more than £25bn over the next four years, threatening economic recovery, a leading business group fears. In a new report, the British Chambers of Commerce (BCC) will say that 18 British employment and tax regulations due to come into force by 2014 will cost companies money that could be spent on creating new jobs. Only two of the new regulations are European Union measures, the Times reports.Aidan Heavey, founder and chief executive of Tullow, the UK's fourth-biggest oil company, says his decision this weekend to pre-empt the $1.35bn (£826m) sale of Heritage Oil's Uganda assets to Eni, the Italian energy group, was all part of a normal day's business."It's a normal day ... It's easy finances," he says. "Is it a strategic change? No it's not. It is gaining a better position in a very important asset for Tullow," the FT reports.The uncertainty hanging over Gala Coral, the gambling operator, could be dispelled in the next few days amid indications that protracted talks over a refinancing are close to resolution.The Times understands that Gala's senior lenders ? led by Royal Bank of Scotland, Lloyds Banking Group and Alcentra ? are in advanced negotiations with the holders of its £540 million of mezzanine debt in a process that could lead to the debt being converted into equity.The city minister is to host a "global debate" on protecting taxpayers from being called on to bail out failing banks in the future. Lord Myners will host representatives from the G7 group of nations, the World Bank and the IMF in London on 25 January for the talks, although the agenda is likely to cover only "broad principles" because of the need to secure an international deal, the Independent reports.