Cadbury rejects Kraft offer; cites strong '09 fin performance
Cadbury rebuffed Kraft Food's takeover offer, citing "outstanding" financial performance in 2009.
By PTI |
LONDON: Cadbury Plc today rebuffed US-based Kraft Food's "derisory" takeover offer, citing "outstanding" financial performance in 2009 and reiterated that shareholder value will be maximised if it remains an independent entity.
The British confectioner had earlier rejected Kraft's over 10-billion pounds hostile cash-and-stock bid, saying it undervalued the company.
In its defence document against Kraft offer, Cadbury today said its financial performance in 2009 was "outstanding" and well ahead of market expectations, and that it anticipates "excellent momentum" going into 2010.
"Our performance in 2009 was outstanding. We generated good revenue growth despite the weakest economic conditions in 80 years," Cadbury's CEO Todd Stitzer said in a statement.
The British company noted that its "standalone value" has increased further since Kraft's approach in September 2009.
Kraft's original offer was 300 pence and 0.26 Kraft shares for every Cadbury stock. Last week, the US firm said it would raise the cash component of the bid by 60 pence.
Appealing to shareholders, Cadbury's Chairman Roger Carr said, "don't let Kraft steal your company with its derisory offer".
He asserted that Kraft's offer is even more unattractive today than it was when the formal offer was made in December.
The statement noted the board was committed to maximising shareholder value, best achieved through "strong continuing performance of an independent Cadbury".
The British confectioner had earlier rejected Kraft's over 10-billion pounds hostile cash-and-stock bid, saying it undervalued the company.
In its defence document against Kraft offer, Cadbury today said its financial performance in 2009 was "outstanding" and well ahead of market expectations, and that it anticipates "excellent momentum" going into 2010.
"Our performance in 2009 was outstanding. We generated good revenue growth despite the weakest economic conditions in 80 years," Cadbury's CEO Todd Stitzer said in a statement.
The British company noted that its "standalone value" has increased further since Kraft's approach in September 2009.
Kraft's original offer was 300 pence and 0.26 Kraft shares for every Cadbury stock. Last week, the US firm said it would raise the cash component of the bid by 60 pence.
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Appealing to shareholders, Cadbury's Chairman Roger Carr said, "don't let Kraft steal your company with its derisory offer".
He asserted that Kraft's offer is even more unattractive today than it was when the formal offer was made in December.
The statement noted the board was committed to maximising shareholder value, best achieved through "strong continuing performance of an independent Cadbury".
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