Kraft's cash-and-stock offer unanimously rejected by Cadbury board

By Lisa Kerner

Charlotte, N.C., Dec. 14 - Cadbury plc's board of directors unanimously rejected an offer to acquire the company from Kraft Foods Inc. and recommends its shareholders do the same, according to a Cadbury news release.

Cadbury said Kraft's offer, which ends Jan. 5, is "wholly inadequate" and "substantially undervalues Cadbury."

As previously reported, Cadbury rejected the same unsolicited offer of 300p in cash and 0.2589 of a new Kraft share per Cadbury share on Nov. 9.

"It is clear to all that Cadbury is a particularly attractive asset in the sector with iconic brands, a sharp category focus and an enviable geographic footprint," Cadbury chairman Roger Carr said in the release.

"Don't let Kraft steal your company with its derisory offer," Carr said to shareholders.

Cadbury, an Uxbridge, England-based confectionery company, also announced upgraded targets for the next four years, which include organic revenue growth of 5% to 7% annually, improved margins of 16% to 18% by 2013 and double-digit growth in dividends per share from 2010 onwards.

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

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