A leading business expert at Coventry University has said that "the proud purple flag of Cadbury had turned into a weeping white flag of surrender" as the Cadbury board recommended the £11.7bn takeover from Kraft to its shareholders.

In what has to be one of the bitterest takeover duels in recent corporate history, Professor David Bailey of the Coventry University Business School said long-term shareholder commitment in the company had been undermined by hedge funds who invested "to make a fast profit in a takeover situation."

Professor Bailey, who has seen the saga unfold over the past few months added: "If there is a good reason to re-start the debate over the vulnerability of British industry to foreign takeovers, then this has to be it - the plight of Cadbury in trying to fight a losing battle.

"Cadbury will now join a long list of British firms gobbled up by foreign takeovers of late; BAA, Boots, Corus, ICI, Jaguar Land Rover, P&O and Pilkington to name but a few."

Despite strong words of warning from Lord Mandelson, the government was effectively powerless to act once a takeover had been agreed having itself removed the 'public interest' element of UK Competition Policy regarding takeovers back in 2000.

This had previously given the government the power to block a takeover if it threatened jobs, the balance of payments, technology or regional development.

Pictured above: Professor David Bailey 

Professor Bailey continued: "The union, Unite, has warned that as many as 30,000 jobs could be put at risk by the deal, with Kraft facing the need to service over £20 billion in debt after the takeover which could result in Kraft looking to find $1 billion plus a year in cost savings to justify the takeover. The cuts will have to be found somewhere. "

Professor Bailey believes that most takeovers fail and could lead to huge disruption "and that's before we even consider the wider social and economic damage".

He concluded: "This is part of the fear with Cadbury and whether Kraft will maintain production and high-level functions in the UK in the long-term.

"The people who really make money out of takeovers are the investment bankers; they are the real beneficiaries of this takeover and indeed most others. The workers at Cadbury don't have a say and because this has happened to an iconic Midlands company, I wonder whether or not the Government would have been as happy to let this happen if it was a hostile takeover of a company which had deep roots in the City of London?"