A shareholder of Cadbury is suing the British confectioner's board and chief executive saying investors "stand to lose out massively" if the company refuses to negotiate over a $15.68 billion takeover bid from Kraft Foods, Inc. The lawsuit was filed in the U.S. District Court in New Jersey. In this lawsuit it asks the Court to order Cadbury directors and officers to respond in good faith to offers which are in the best interest of Cadbury. I don't know if this lawsuit will be tangible. It seems to me that this decision would be up to the discretion of Cadbury.
http://money.cnn.com/2009/10/01/news/international/cadbury_lawsuit.reut/index.htm
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This is a fishy situation ill have to pay attention to i remember back when kraft made the bid in september but this article leaves me slightly confused I too would think it'd be up to the company to sell or not and no right for a law suit this line inparticularly had me a lttle confused.
ReplyDelete"A Cadbury spokesman said on Thursday that the company has not seen the lawsuit. "However, we note that no offer has been made for Cadbury" under British law, spokesman Trevor Datson said.
Kraft, which is not named as a party in the lawsuit, declined to comment."
What can they do that? Okay, Kraft made a bid for Cadbury but isn't it the companies decision to sell not the investors? Unless the investors have controlling interest. Why is the shareholder suing the company, don't they make money from what the company sells and makes either way?
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