Cadbury board approves higher Kraft bid
Cadbury board approves higher Kraft bid
Tuesday 19th January 2010
British confectionary firm Cadbury is to be taken over by Kraft after agreeing an improved offer from the US food giant.Despite months of rejections from Cadbury, Kraft finally made an offer deemed acceptable by the Dairy Milk-maker, and shareholders were told to accept the improved bid, which values the company at £11.5 billion, or 840p a share.
Cadbury started the morning well on the UK's leading share index following the announcement, with shares over three per cent higher on the FTSE 100, valued at 834p per share in early trading.
Irene Rosenfeld, chairman and chief executive of Kraft Foods, said in a statement today: "We have great respect for Cadbury's brands, heritage and people. We believe they will thrive as part of Kraft Foods. This recommended offer represents a compelling opportunity for Cadbury shareholders, providing both immediate value certainty and upside potential in the combined company.
"For Kraft Foods shareholders it transforms the portfolio, accelerates long-term growth and delivers highly attractive returns, while maintaining financial discipline."
The Kraft/Cadbury takeover saga began in September, when the British firm rejected a £10 billion bid. Cadbury then rejected Kraft's hostile bid in November, and following a detailed bid aimed at shareholders from Kraft, Cadbury urged its shareholders to reject the offer later in 2009.
There has been concern from unions that the takeover could threaten British jobs, with Unite campaigning to keep Cadbury independent. The company, which dates back to 1824, is best known for its chocolate brands such as Dairy Milk and Crème Egg, while Kraft is recognised in the UK for brands such as Dairylea.
Roger Carr, chairman of Cadbury, said: "We believe the offer represents good value for Cadbury shareholders and are pleased with the commitment that Kraft Foods has made to our heritage, values and people throughout the world. We will now work with the Kraft Foods' management to ensure the continued success and growth of the business for the benefit of our customers, consumers and employees."
Related News
FTSE 100 down despite Cadbury takeover - 19/01/10
The FTSE 100 began Tuesday down half a per cent, despite the positive reaction to the news Cadbury is to be taken over by US food company Kraft
The FTSE 100 began Tuesday down half a per cent, despite the positive reaction to the news Cadbury is to be taken over by US food company Kraft
FTSE 100 up on positive mining prices - 18/01/10
The FTSE 100 started the week in positive fashion, ending Monday up 0
The FTSE 100 started the week in positive fashion, ending Monday up 0
Lowest housing stock of century for sellers - 18/01/10
The UK is experiencing the lowest stock in the housing market this century, "creating a window of opportunity for sellers", according to analysts
The UK is experiencing the lowest stock in the housing market this century, "creating a window of opportunity for sellers", according to analysts
Brown reaches out to middle Britain - 18/01/10
Gordon Brown has attempted to draw a line under accusations he has been stoking a class war with a direct appeal to the "mainstream majority" of Britain
Gordon Brown has attempted to draw a line under accusations he has been stoking a class war with a direct appeal to the "mainstream majority" of Britain
News Article Search
Quick Apply
News Archive