US/UK: Kraft sends offer to Cadbury investors
Kraft Foods has sent details of its takeover bid directly to Cadbury shareholders today (4 December) - with the US food giant's boss Irene Rosenfeld insisting the offer is in the "best interests" of both companies' investors.
The US group had until the end of Monday to send the terms and conditions of the offer to Cadbury's shareholders but chose to disclose the details of its bid - already labelled "derisory" by the Dairy Milk's board - ahead of the deadline.
Rosenfeld, Kraft's chairman and CEO, said the offer, which was first announced on 9 November, presented a "significant growth opportunity for both businesses".
Rosenfeld said: "That's why we believe this offer is in the best interest of both companies' shareholders. Our offer is fully financed, represents a substantial premium to Cadbury's unaffected share price and provides both immediate value certainty and meaningful longer-term upside potential."
Kraft has offered Cadbury shareholders 300 pence in cash and 0.2589 "new Kraft Foods shares". The Milka chocolate maker has also tabled an offer to Cadbury's ADS holders worth 1,200 pence in cash and 1.0356 new Kraft Foods shares.
Shareholders have until January 5 to respond to the offer. Cadbury's share price dipped on news of the Kraft disclosure and were down 0.37% at 797p.
Analysts have argued that Kraft needs to raise its bid to sway Cadbury's management. Andrew Wood, an analyst at Sanford Bernstein, has set a share price target at 900p a share.
As quarterly results from the world's listed food makers rained down upon us last week, industry watchers waited for any signs of confidence about the economic outlook, writes Dean Best....
UK retail grabbed the headlines this week, with Wal-Mart announcing the appointment of a new CEO for local arm Asda and Sainsbury's booking a set of bumper full-year results....
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