Cadbury hits back at Kraft's 'derisory offer'
Birmingham-based confectionery giant Cadbury has accused Kraft of trying to buy it "on the cheap" as it set out a robust defence against the US suitor's £10 billion hostile bid.
The Dairy Milk maker upped long-term performance targets and said profit margins for the current year are expected to be higher than original guidance, as it sought to underline its prospects as an independent company.
Cadbury chairman Roger Carr warned shareholders not to let Kraft "steal your company with its derisory offer".
The group's defence comes amid reports that Cadbury is in talks with US rival Hershey over a possible "white knight" offer.
Cadbury declined to comment on the reported discussions with Hershey, but confirmed expressions of interest by potential rival bidders.
Hershey has already said it is considering options for Cadbury, as has Ferrero Rocher maker Ferrero.
Cadbury is widely speculated to favour a tie-up with Hershey, with which it already has a business relationship as Hershey holds a licence to make Dairy Milk bars and Creme Eggs in the US.
Kraft's approach - worth around 725p a share - is also seen as being far short of the 850p price analysts believe Cadbury can fetch and was quickly dismissed by the group's board as being "wholly inadequate".
Mr Carr said: "Cadbury is an exceptional business worth much more than the offer put forward by Kraft.
"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."
