Cadbury will formally respond to Kraft Foods’ hostile takover bid when the UK confectioner delivers its pre-close trading update next Monday (14 December).
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“Under US securities law, Cadbury is prohibited from publishing any further information, or making any further statement, until it has issued its formal response,” Cadbury said in a statement.
On Friday, Kraft sent a letter to Cadbury shareholders detailing its takeover proposal.
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.
Although Cadbury has repeatedly insisted that the offer materially undervalues the Dairy Milk maker, Kraft has argued that it is in the best interests of both companies’ shareholders.
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By GlobalDataKraft’s chairman and CEO Irene Rosenfeld said on Friday that the deal, 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.”
