Monday January 11, 2010

Cadbury Again Rebuffs Kraft

London — Cadbury plc’s board has reiterated its rejection of Kraft Foods, Inc.’s takeover offer, claiming the proposal fundamentally undervalues the company and its prospects.

Responding to the EU Commission’s conditional approval of Kraft’s proposed takeover of the company, Cadbury has recommended shareholders not accept the $16.2 billion offer. The company noted the strength of its brands in Poland and Romania, and affirmed it is focused on “a winning start to 2010.”

Cadbury also is set to release its second response document on January 15. Kraft has until January 19 to amend its offer, according to EU regulatory guidelines. The company has said it will offer more detail on the terms on or before January 19, and extended the date by which shareholders can accept its bid to February 2, which ends the 60-day timetable set by the UK Takeover Panel.