Kraft defends bid for Cadbury
US food giant Kraft has today reinforced its belief that a tie-up with Cadbury would “represent a uniquely complementary fit”.
Kraft is actively trying to convince Cadbury shareholders that a combination with its British rival could “deliver substantially more value” together and would benefit Cadbury staff as new jobs would be created in the UK.
Kraft warned Cadbury’s shareholders that they will be “taking a risk” if they support Cadbury as a standalone company.
In a statement, Kraft said: “Cadbury is asking its shareholders to put their faith in… a set of long-term targets never before achieved by Cadbury and subject to significant risk and uncertainty.”
Kraft’s chairman and chief executive, Irene Rosenfeld, said that the company would “continue to maintain a disciplined approach with respect to the acquisition of Cadbury”.
At the time of the first offer in September, Kraft said a combination of the two firms would create a “global powerhouse” in food and confectionery, with annual sales of around US$50 billion (£30.5 billion).
Meanwhile, the US food company, which is renowned for brands such as Kenco coffee and Oreo biscuits, also said it hopes to keep open Cadbury’s Somerdale factory near Bristol, which is currently scheduled to close.
Kraft also said the deal would invest in Cadbury’s plant in Bournville, Birmingham.
However, so far the Cadbury board have rejected Kraft’s takeover offers describing them as “unappealing” and “unattractive”.
Cadbury shareholders have until 5 January 2010 to respond to Kraft’s takeover offer.
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