Cadbury to reject Kraft next week
CADBURY yesterday issued a blunt statement saying it would make a formal response to Kraft’s hostile bid next week, alongside its end of year trading figures.
Due to US securities laws “Cadbury is prohibited from publishing any further information, or making any further statement, until it has issued its formal response,” the group said.
The British Dairy Milk maker has already called the £9.8bn offer of 300p in cash and 0.2589 Kraft shares “derisory” – but US rival Kraft has pressed on with its hostile offer and gone directly to shareholders.
Since tabling the offer, US confectionery firm Hershey has said it is weighing its options, as is Nutella maker Ferrero.
But analysts are carefully watching Nestlé, which has enough firepower to easily swallow Cadbury, though it is cautious it may face anti-trust issues.
Hershey is also believed to have contacted Nestlé about running a joint-bid which could see Cadbury calved up between them.
Meanwhile, Nestlé yesterday announced it would make its Kit-Kat bars Fairtrade.
The move will not alter the price of the snack, but will mean cocoa farmers in the Ivory Coast will get a fairer price.