Cadbury says no thanks to Kraft's unchanged, unsolicited offer

By Lisa Kerner

Charlotte, N.C., Nov. 9 - Cadbury plc rejected Kraft Foods Inc.'s unsolicited offer to acquire the company for 300p in cash and 0.2589 new Kraft shares per Cadbury share.

Kraft made the same offer on Sept. 7, which Cadbury also rejected, according to a Cadbury news release.

The latest offer values each Cadbury share at 717p based on Kraft's closing price on Friday.

As previously reported, the September offer was valued at 745p per share.

Cadbury, an Uxbridge, England-based confectionery company, is recommending its shareholders reject the offer.

"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," Cadbury chairman Roger Carr said in the release.

"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."

Northfield, Ill.-based Kraft is the world's second-largest food company.

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