Kraft formalizes hostile bid for Cadbury

November 9, 2009

(ChattahBox) — Kraft Foods has launched a follow-up $16.3 billion hostile takeover bid Monday for British chocolate and chewing gum company, Cadbury. Kraft did not raise its offer from September, in fact by keeping the previously rebuffed cash-and-stock approach, it effectively means a lower offer for investors , because of a downward shift in the share prices of both companies. Analysts had expected Kraft, which makes of Ritz crackers and Oreo cookies, to sweeten its original proposal but they have offered £3, or $4.90, in cash and 0.2589 new Kraft shares for every Cadbury share. Kraft made its move with just three hours to go before a so-called “put up or shut up” deadline under British takeover law that required Kraft to make a formal offer within 60 days, or walk away for six months.  After the Cadbury board promptly rejected the new formal offer as too low, Kraft has gone directly to shareholders on Monday.  Kraft backed its decision not to sweeten the offer by saying it hasn’t seen any signs of a competing offer for the British confectioner and it therefore offers the best value to Cadbury’s shareholders.

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Comments

2 Responses to “Kraft formalizes hostile bid for Cadbury”

  1. Chrystal K. on November 9th, 2009 7:32 pm

    Go Cadbury!

  2. Morris Bagnall on November 10th, 2009 12:15 am

    I would encourage you to visit and join this Facebook Group I started called:

    “Oi! Kraft. Keep your filthy hands off of our Cadburys Chocolate”

    I think this link will get you there:

    http://www.facebook.com/group.php?gid=205749918031&ref=nf

    I am doing it for a laugh and to raise awareness amongst those who don’t pay attention to the business news or don’t realise the implications.

    There is no financial gain or notoriety involved though we’ll have to see if it gets big enough to attract the attention of the Kraft lawyers:) Hope so!!

    I am a Brit living in NJ who cares about the UK and cares about jobs there and who has worked for Cadbury as a consultant in the past and don’t want to see a British institution fall into US hands.

    We shall overcome!

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