Cadbury Will Answer Kraft's Bid
December 7, 2009
by Canadian Packaging Staff
Confectionery group Cadbury plc said on December 7, 2009 that it will respond next week to a hostile takeover bid from U.S. giant Kraft Foods Inc. that was posted to shareholders before the weekend. Kraft had launched a formal takeover bid on September 7, but after repeatedly being rebuffed by Cadbury’s management, decided on December 4 to apeal directly to the world’s second-largest confectionary company’s shareholders sharing details of the offer, said to valued at approximately £10.1-billion pounds (Cdn $17.5-billion) in cash and shares.
"Cadbury notes the publication by Kraft Foods Inc. of its offer document to Cadbury’s shareholders," says the London-listed Cadbury in a statement. "Under U.S. securities law, Cadbury is prohibited from publishing any further information, or making any further statement, until it has issued its formal response.
"Cadbury today announces that it will post to shareholders its formal response to Kraft’s offer on Monday, December 14, 2009. Cadbury will host a presentation in London for analysts and investors on that date, which will also include its regular pre-close trading update."
According to the report, Cadbury’s shareholders have until January 5, 2010 to accept Kraft’s offer,worth £3.00 (Cdn $5.19) in cash and 0.2589 new Kraft Foods shares per Cadbury share.
On November 18,the U.S. chocolate makers The Hershey Co. and Italian Ferrero International SA had said they were contemplating a joint bid on Cadbury, which could whip up a bidding war with Kraft.
More details can be found on Cadbury’s website: www.cadburyinvestors.com.