LONDON - British confectioner Cadbury said on Wednesday it had insured 500 million pounds ($813 million) of pension liabilities in a deal allowing it to keep control of the scheme's assets.
Cadbury, fighting off a hostile takeover bid from U.S. food group rival Kraft, sealed the insurance deal covering British pension obligations with Pension Insurance Corporation (PIC).
PIC takes a premium in order to insure against the possibility that scheme members will live longer than expected. The deal is part of a wider strategy to tackle pension fund risks, a Cadbury spokesman said.
The spokesman said the deal had been decided upon independently of the company and was not connected to Kraft's takeover bid. The company had no influence over the timing of the announcement as this is a Trustees matter.
(Reporting by Cecilia Valente; Editing by Dan Lalor)
($1 = 0.6147 pound)