UK confectionery giant Cadbury has dismissed Kraft Foods’ revised takeover offer as “unchanged and derisory”.
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The US food giant this morning (5 January) outlined plans to offer more cash to Cadbury shareholders after agreeing to sell its North American frozen pizza business to Nestle.
Cadbury investors will have the chance to receive a “partial cash alternative” as part of Kraft’s offer, a set of terms that will be funded by the group’s US$3.7bn pizza deal with Nestle.
However, Cadbury, which has so far rejected Kraft’s advances remained steadfast in its opposition to the offer.
A spokesman said: “Kraft has once again missed the point. Despite this tinkering, the Kraft offer remains unchanged and derisory with less than half of the consideration in cash.”
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By GlobalDataKraft plans to release more details of the “partial cash alternative” by 19 January. However, the company said it will apply “an amount equivalent to the net proceeds from the pizza sale”, estimated to be 60p per Cadbury Share or 240p per Cadbury ADS, to fund the new cash part to its offer.
