Professor Chris Bones at the House of Commons

Professor Christopher Bones, Dean, Henley Business School at the University of Reading today (Tuesday January 12) gave evidence to the select committee for Business, Innovation and Skills enquiring into company takeovers, mergers and acquisitions. Professor Bones' evidence, which draws heavily on the example of the current take over bid of Cadbury by Kraft, received widespread coverage in the UK media. The Today Programme, Wake Up To Money, BBC West Midlands, BBC World News and News Channel and The Guardian all carried interviews with Prof Bones.

Professor Bones questioned whether Kraft could be trusted to keep to its commitment to ensure that Cadbury's Bath factory stayed open bearing in mind Kraft gave the same commitment to Terry's of York in 1993 and closed the factory 12 years later.

Professor Bones drew attention to the threat to the UK's science base and leading-edge research in GM other food related areas. The Global Science Centre for Cadbury plc located at the University of Reading researches food security, identified by the Government as one of the core STEM subjects of critical importance to national security. The Centre employs 130 highly skilled researchers and is an established centre of excellence in the UK attracting research investment and international students from around the world. Kraft plans to transfer such activity to its US laboratories.

Additionally, Cadbury plays a prominent role in building the UK's reputation for ethical and responsible business in areas of the world where the UK has a significant interest in maintaining and sustaining its economic and political influence. In particular their commitment to ethical and sustainable practices in cocoa production and their endorsement of the Fair trade movement are major symbols locally in Africa and worldwide. Professor Bones expressed his concern that Kraft's approach to its consumer brands - the company has rejected Fair trade as a model for their coffee and chocolate - may impact on the reputation of the UK in areas of strategic importance such as India and Africa.

Finally Professor Bones questioned whether it was right that a UK bank (RBS) which is 84% owned by the UK taxpayer should be funding the acquisition of an iconic UK company by a US conglomerate, especially when the CBI Director General in his new year message is calling for more funds to be made available for investment in UK businesses.

"The ultimate irony for any government would be the sight of the corporate banking team at RBS or any other gobernment-owned institution being paid multi-million pound bonuses for funding the acquisition of a UK company by a US conglomerate at a price that failed to reflect real market value with an outcome that damaged the long term interests of the UK economy," says Professor Bones.