Cadbury rejects Kraft's hostile bid

News Type: Event — Seeded on Mon Nov 9, 2009 8:30 PM EST

Article Source: Guardian Unlimited

Cadbury today rejected a hostile takeover bid from Kraft as "derisory" and not "remotely close" to its true value after the world's second largest food conglomerate took its bid directly to shareholders.

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The hostile bid was confirmed in a stock market announcement with offer terms unchanged from those suggested by Kraft in early September. The Cadbury chairman, Roger Carr, repsonded: "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."

Carr has maintained the largely share-based proposal is "unappealing" and has refused to enter into discussions.

Movements in Kraft's share price and a weakening pound meant the formalised offer was worth £9.8bn, or 717p a share, this , down from £10.2bn, or 745p a share, when it was first mooted.

"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," Carr said. "[It] 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."

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#1 - Mon Nov 9, 2009 8:31 PM EST

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	Cadbury rejects Kraft's $16.5 billion bid	CNN	Mon Nov 9	14
	Cadbury rejects Kraft bid	Associated Press	Mon Nov 9	0

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Cadbury rejects Kraft's hostile bid

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