Cadbury dubs Kraft’s offer as “cheap steal”

Defending its rejection of Kraft's 16.7-billion hostile takeover bid, UK confectioner Cadbury today said that Kraft is trying to buy Cadbury on the cheap to provide much needed growth to its own unattractive low-growth conglomerate business model

Once again recommending its shareholders to reject Kraft's wholly inadequate offer substantially undervaluing Cadbury, Roger Carr, chairman of Cadbury said, ''Don't let Kraft steal your company with its derisory offer.''

The London-based confectioner had first rejected in September Kraft Foods' $16.7-billion (£10.2 billion) acquisition offer to create ''a global powerhouse in snacks, confectionery and quick meals.'' (See: Cadbury rejects Kraft Foods' $16.7 billion merger offer)

Illinois-based Kraft, the largest food and beverage company in the US, had offered to pay 300 pence in cash and 0.2589 new Kraft shares for every Cadbury share, valuing the maker of Cadbury milk chocolate, Trident and Halls at £10.2 billion.

Cadbury said today in its defence document that its board is committed to maximising shareholder value and once again reiterated that it believes that this is best achieved through the strong continuing performance of an independent Cadbury.

It added that it is a business with exceptional growth opportunities, reflecting its strong position as a unique pure-play confectionery business, with iconic brands and leading positions in the attractive confectionery market.