Kraft posts offer for Cadbury

by Eric Schroeder
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NORTHFIELD, ILL. — Kraft Foods Inc. this morning posted its £9.8 billion ($16.3 billion) share-and-cash takeover offer for London-based Cadbury P.L.C. The offer, which was unchanged from Kraft’s earlier proposal of 300 pence in cash and 0.2589 new Kraft shares for each Cadbury share, was communicated to Cadbury U.S. shareholders, Cadbury Canadian shareholders and Cadbury ADS holders (wherever located).

"We remain confident that the unique combination of Kraft Foods and Cadbury would create a significant growth opportunity for both businesses," said Irene B. Rosenfeld, chairman and chief executive officer for Kraft Foods. "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."

By posting the offer document today, Kraft starts the clock on a 60-day timetable under U.K. takeover rules. The company will have until day 46, the middle of January, to raise its bid for Cadbury should a rival suitor emerge. Cadbury, meanwhile, will have until day 14 to publish its defense document.

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