Kraft Foods has been set a deadline to make a formal offer for Cadbury or the US food giant will be forced to put any takeover ambitions on hold for six months.
In a statement released this morning (30 September), the UK’s Takeover Panel said that Kraft must either announce a firm offer for the UK confectioner by 5pm on 9 November or “announce that it does not intend to make an offer”.
Cadbury first rejected Kraft’s GBP10.2bn (US$16.26bn) advance three weeks ago, claiming that the offer “materially undervalued” the company and its prospects for growth.
Responding to the Takeover Panel announcement, Cadbury insisted that its view of Kraft’s proposal remained unchanged.
“Cadbury has a strong position in the global confectionery market and the board is confident in Cadbury’s standalone pure play strategy and growth prospects,” Cadbury’s chairman Roger Carr said.
“We have made our position on Kraft’s proposal very clear and we welcome the panel’s decision in the interests of obtaining clarity and certainty for our shareholders and employees at the earliest opportunity.”