Mandelson set to join fight to keep Cadbury out of Kraft's hands

The Unite trade union has warned of massive job cuts and "unacceptable risks" if Kraft's takeover is backed by shareholders.

Cadbury employs 800 staff at its Bassett's Liquorice Allsorts plant in Sheffield

Lord Mandelson is due to meet a group of institutional investors today to discuss their role in takeovers. Analysts believe that Kraft's offer for Cadbury will top the agenda.

Lord Mandelson has been a strong supporter of Cadbury, but has no statutory powers to block the bid.

"If you think that you can come here and make a fast buck, you will find that you face huge opposition from the local population ... and from the British government," Lord Mandelson said last month referring to Kraft's bid for Cadbury.

Unite, Britain's biggest trade union, said in a briefing note that nearly 30,000 jobs were at risk if the debt-laden Kraft wins, and urged Cadbury investors to put the wider public interest ahead of price.

Unite spokeswoman Jennie Formby said: "Cadbury has clearly demonstrated its strength as a stand-alone company. Contrast that with Kraft's excessive debt, underperformance and the unacceptable risks this brings for Cadbury, and it is hard to see any wisdom in this bid whatsoever."

Earlier this week, the union gave evidence to the Select Committee on Business and Innovation, which is looking at the questions the bid for Cadbury poses for UK corporate governance and investor practices.

Cadbury, which also makes Trident gum, has said Kraft's "derisory" offer values it below that of any comparable deal in the sector.

On Tuesday it reported robust 2009 results and said its momentum had continued into 2010.

Kraft, raised its 2009 profit forecast on Tuesday and said it was well positioned for "sustainable top-tier performance, with or without Cadbury".

Kraft has until January 19 to raise its bid. Cadbury investors must respond to Kraft's offer by February 2.

Last night, speculation was mounting that Italian chocolatier Ferrero had pulled out of the race to bid for Cadbury.

If Ferrero withdraws, it leaves only Hershey Co as a possible rival to Kraft's 10.5bn hostile bid.