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| Cadbury fights back in bid battle | |
| (about 2 hours later) | |
| UK confectioner Cadbury has defended its decision to reject a hostile takeover bid from Kraft Foods. | UK confectioner Cadbury has defended its decision to reject a hostile takeover bid from Kraft Foods. |
| It repeated its claim that Kraft's "derisory" bid was an attempt to "buy Cadbury on the cheap". | It repeated its claim that Kraft's "derisory" bid was an attempt to "buy Cadbury on the cheap". |
| It cited its strong trading record over the last year, together with its "exceptional growth opportunities". | It cited its strong trading record over the last year, together with its "exceptional growth opportunities". |
| The Cadbury board first rejected Kraft's £10bn bid in November, and is in talks with US rival Hershey about an alternative takeover deal. | The Cadbury board first rejected Kraft's £10bn bid in November, and is in talks with US rival Hershey about an alternative takeover deal. |
| 'Iconic brands' | 'Iconic brands' |
| In the statement aimed at shareholders, Cadbury chairman Roger Carr stressed the value of the Cadbury brand and products. | In the statement aimed at shareholders, Cadbury chairman Roger Carr stressed the value of the Cadbury brand and products. |
| Cadbury have come out fighting here James Targett, Consumer Equity Research class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=7340&edition=1&ttl=20091214094857">Send us your comments | |
| "Cadbury is an exceptional business worth much more than the offer put forward by Kraft," he said. | "Cadbury is an exceptional business worth much more than the offer put forward by Kraft," he said. |
| "It is clear to all that Cadbury is a particularly attractive asset in the sector with iconic brands, a sharp category focus and an enviable geographic footprint. | "It is clear to all that Cadbury is a particularly attractive asset in the sector with iconic brands, a sharp category focus and an enviable geographic footprint. |
| "Kraft is trying to buy Cadbury on the cheap to provide much needed growth to their unattractive low-growth conglomerate business model. Don't let Kraft steal your company with its derisory offer." | "Kraft is trying to buy Cadbury on the cheap to provide much needed growth to their unattractive low-growth conglomerate business model. Don't let Kraft steal your company with its derisory offer." |
| Cadbury owns brands including Wispa, Dairy Milk and Flake as well as Trident Gum and Hall's Sweets. | Cadbury owns brands including Wispa, Dairy Milk and Flake as well as Trident Gum and Hall's Sweets. |
| Shareholders have until 5 January 2010 to respond to the offer, which Kraft says is in the "best interests" of both companies. | Shareholders have until 5 January 2010 to respond to the offer, which Kraft says is in the "best interests" of both companies. |
| The offer values Cadbury at 718p per share - below the current share price of 787p per share. | The offer values Cadbury at 718p per share - below the current share price of 787p per share. |
| Hershey move? | Hershey move? |
| Cadbury chief executive Todd Stitzer said Cadbury's performance in recent months was continuing to "exceed expectations", demonstrating that Cadbury's strategy of remaining as a standalone company was working. | Cadbury chief executive Todd Stitzer said Cadbury's performance in recent months was continuing to "exceed expectations", demonstrating that Cadbury's strategy of remaining as a standalone company was working. |
| The company also said it expected revenue growth of between 5% and 7% over the coming years, with operating margins of between 16% and 18% by 2013. | The company also said it expected revenue growth of between 5% and 7% over the coming years, with operating margins of between 16% and 18% by 2013. |
| However, Mr Stitzer made no reference to Hershey making a possible bid to rival Kraft's offer. | However, Mr Stitzer made no reference to Hershey making a possible bid to rival Kraft's offer. |
| Hershey, which already makes some Cadbury products under licence in the US, is believed to be interested in tabling a higher offer in a move welcomed by the Cadbury board. | Hershey, which already makes some Cadbury products under licence in the US, is believed to be interested in tabling a higher offer in a move welcomed by the Cadbury board. |
| Commenting on the statement, James Targett, an analyst at Consumer Equity Research, questioned Hershey's ability to buy Cadbury outright, given the relative size of the two companies. | Commenting on the statement, James Targett, an analyst at Consumer Equity Research, questioned Hershey's ability to buy Cadbury outright, given the relative size of the two companies. |
| He added that it was now down to the shareholders to decide who they trusted. | He added that it was now down to the shareholders to decide who they trusted. |
| "Cadbury have come out fighting here. It will come down to whether shareholders have confidence in Cadbury's management's ability to deliver on what they're promising," he said. | "Cadbury have come out fighting here. It will come down to whether shareholders have confidence in Cadbury's management's ability to deliver on what they're promising," he said. |
| "Kraft have to prove why Cadbury's won't be able to deliver on those promises as a standalone company." | "Kraft have to prove why Cadbury's won't be able to deliver on those promises as a standalone company." |