MP calls for probe into RBS's £630m Kraft loan


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An MP has called for an investigation into how state-owned Royal Bank of Scotland is being allowed to lend £630m to the American firm bidding to buy British confectioner Cadbury.

Labour politician Khalid Mahmood has written to Chancellor Alistair Darling expressing concerns about future jobs if Toblerone-maker Kraft is successful in its £9.8bn takeover.

A selection of products from Kraft Foods Inc

Kraft's latest bid was a low-ball £9.8billion cash and shares proposal

He believes that the first priority of the government-controlled RBS should be to support British business.

'I don't think that a bank in which the taxpayer is a big investor should be supporting a hostile bid from an American company,' he said. 'British jobs could be at risk and I've asked the Chancellor to look at whether the bank is up to its old tricks of looking after itself rather than the people.'

Mahmood believes such a move raises serious questions about the strategy being pursued by taxpayer-funded RBS. Cadbury rose 12p to 775p.

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