Cadbury Rejects Kraft’s Unsolicited Takeover Offer as Too Low |
| Bloomberg - Nov 9, 2009 |
Cadbury Plc, the maker of Dairy Milk chocolate, rejected Kraft Foods Inc.’s unsolicited takeover offer of 9.8 billion pounds ($16 billion) after Kraft stuck to the terms of its initial bid.
Kraft offered 300 pence in cash and 0.2589 new Kraft share per Cadbury share, the same as a bid made public Sept. 7, the Northfield, Illinois-based company said today in a statement. As of last week’s closing prices, the bid values Cadbury at 717 pence a share, below the current price. Cadbury recommended that investors reject the offer because Kraft’s stock drop has caused the value to decline from its initial 745-pence level.
The formal offer may be a starting point for talks with Cadbury, said Jane Coffey, who helps oversee $12 billion at Royal London Asset Management, which owns Cadbury shares. Cadbury has said it’s confident in its prospects as an independent entity, calling the original proposal from Kraft Chairman and Chief Executive Officer Irene Rosenfeld an “unappealing prospect” from a “low-growth” conglomerate.
Read Full Article from Bloomberg
- Posted: 2009-11-09 10:46:28
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