Cadbury rejects Kraft's £9.8bn hostile bid

LONDON - Cadbury has again rejected a £9.8bn hostile bid from food giant Kraft.

Today's proposed amount is the same as its original expression of interest in September.

Cadbury has branded the offer as "unattractive" and "derisory".

Cadbury has branded the offer ‘worse than the proposal that the board has previously rejected as fundamentally undervaluing Cadbury and its prospects'.

Kraft's share price has fallen since it made its original offer, thus reducing the value of the offer.

Kraft said it had agreed a £5.5bn credit facility with banks including Citigroup, Deutsche Bank and HSBC to finance the cash portion of its bid.

Tom Blackett, chairman at branding agency Siegel+Gale, said Kraft must change focus to look at how the consumer will benefit from any takeover.

'Kraft has said nothing about how it intends to improve the Cadbury range for the benefit of its millions of loyal customers,' said Blackett, formerly group deputy chairman at Interbrand.

He adds: 'Cadbury has been serving its public well for over 120 years; the public has reciprocated by buying its products, enjoying them, and buying them again. Yet Kraft have not mentioned once what they have in store for customers.'

 

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