LGIM backs Cadbury's Kraft rejection

Mark Burgess, the group's head of active equities and corporate governance, says it backs Cadbury management's initiatives to boost shareholder returns. LGIM, which owns over 5% of Cadbury, says it holds the company in both its active and passive funds. "We have welcomed the management moves to improve shareholder returns, and think these initiatives have much further to run," Burgess says. "We also note the valuations of other recent food transactions. "As such we therefore believe this approach materially undervalues Cadbury and support the management in rejecting it."