Kraft releases formal offer to Cadbury shareholders

The bid, which values the British confectioner at A$18.2 billion, has been labelled as “derisory” by Cadbury and still remains unchanged from the initial non-binding proposal in September.

“We remain confident that the unique combination of Kraft Foods and Cadbury would create a significant growth opportunity for both businesses,” Chairman and CEO of Kraft Foods, Irene Rosenfeld, said. “That’s why we believe this Offer is in the best interest of both companies’ shareholders. Our Offer is fully financed, represents a substantial premium to Cadbury’s unaffected share price and provides both immediate value certainty and meaningful longer-term upside potential.”

The cash and scrip deal currently needs to be accepted by Cadbury shareholders by January 5, 2010, although under UK takeover laws Kraft has sixty days to convince shareholders and may alter the offer at any stage in the next 46 days.