Kraft has today made an offer for all of the issued and to be issued share capital of Cadbury, under the same terms as its tentative offer in September.
By Chris Farnell
With five hours to go until the Takeover Panel deadline, Kraft is offering 300 pence in cash and 0.2589 New Kraft Foods Shares for each Cadbury Share, and 1,200 pence in cash and 1.0356 New Kraft Foods Shares for each Cadbury ADS.
Commenting on the offer, Irene Rosenfeld, Chairman and CEO of Kraft Foods, said: "We remain convinced of the strategic merits for both companies of combining Kraft Foods and Cadbury. We believe that our proposal offers the best immediate and long-term value for Cadbury's shareholders and for the company itself compared with any other option currently available, including Cadbury remaining independent."
Since September, Kraft shares have dropped in value, effectively making this offer worth less than the offer made in September. Cadbury has rejected the offer as not "remotely close" to the company’s worth.
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.
"Cadbury is an exceptional standalone business. It has strong iconic brands, a sharp category focus and an enviable geographic scope. Our successful financial delivery and strong business model reinforce the Board's belief in both the strategy and prospects of Cadbury as an independent company.
"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."
Edited by Ellie Duncan & Ian Armitage
Source: The Kraft Offer