Cadbury chairman: Kraft bid undervalues company

DALLAS: The chairman of UK candy maker Cadbury PLC says Kraft Foods is a low-growth conglomerate whose takeover offer undervalues his company.

Roger Carr laid out his opposition to Kraft's bid in an open letter Saturday to Kraft CEO Irene Rosenfeld.

Kraft issued a cash-and-stock offer originally valued at $16.7 billion for Cadbury on Monday.

Since then, Kraft shares have fallen about 7 per cent, which Carr said made Kraft's bid an ``uncertain value'' for Cadbury shareholders.

Carr says under Kraft's offer, ``Cadbury would be absorbed into Kraft's low growth, conglomerate business model, an unappealing prospect'' that contrasts with Cadbury's strategy to remain a confectionery company.

Kraft makes cheese, Maxwell House