The City takeover panel has reported that US firm Kraft is under investigation process by UK regulators into whether it misled Cadbury employees and investors during the battle to take over the confectioner.

The Wall Street Journal posted that Kraft had thought that it could save the Somerdale plant, which Cadbury had planned to close down.

After the deal was concluded, Kraft revealed that the factory, near Bristol, would close by 2011, costing 400 jobs.

However, both Kraft and the takeover panel preferred to remain silent on the report.

The US food giant has grabbed strong rebuke from workers and Business Secretary Lord Mandelson for altering its decision keeping open a Cadbury factory near Bath, which is now set to close with the loss of hundreds of jobs.

Amoree Radford, who leads a campaign to preserve Keynsham's chocolate factory, told the BBC, "We know we can't get the jobs back, but we want the authorities to learn their lessons so it doesn't happen to another company later".