DISCUSSION Sixteen Questions from the Cadbury takeover

by Yolanda Villafuerte _______21st January 2010

by Mark Goyder

So many questions arise from this takeover. Some of them are raised by Will Hutton and Philip Blond in today’s FT. But while Hutton and Blond (rightly) worry about the UK national interest, the outcome actually appears to make little sense in terms of the self interest of most of the people involved.
Even if you accept that the stock market should be left to get on with the business of creating long term shareholder value, here are questions that the major participants in that system need to answer.
They are all summarised in one key question: If we accept that an efficient capitalism needs effective stewardship, why are the implications of stewardship ignored in a takeover situation?
Tomorrow’s Company is now creating a forum which will, among other things, be examining these questions.

See also the Wall Street Journal piece by Mark Goyder and Philip Goldenberg which explains why boards and investors are not obliged to make decisions by price alone.

Sixteen Questions from the Cadbury takeover
For the board of Cadbury:
For fund managers owning shares in Cadbury:
For the pension funds and other beneficial owners of Cadbury:
For the UK Government: