News - Midlands
Cadbury rejects latest Kraft offer
Kraft has launched a hostile takeover bid for Cadbury, which the
confectioner has said it has "emphatically rejected." Kraft said it
would offer 300p in cash and 0.2589 new Kraft shares for each Cadbury
share, the same terms as it proposed in September, but since that time
the value of the Cadbury's shares has dropped and the offer is now
around 4 per cent less than the £10.2bn it offered at the time. Roger
Carr, Chairman of Cadbury, said: "The repetition of a proposal which is
now of less value and lower than the current Cadbury share price does
not make it any more attractive. As a result, the Board has
emphatically rejected this derisory offer and has strengthened its
resolve to ensure the true value of Cadbury is fully understood by all.
Kraft's offer does not come remotely close to reflecting the true value
of our company, and involves the unattractive prospect of the
absorption of Cadbury into a low-growth conglomerate business model. I
am confident Cadbury will deliver significant value - which should
accrue wholly to our shareholders."