Monday, September 14, 2009

Cadbury reponds to Kraft's offer(CBY, KFT)

AlphaNinja - Just out is a letter dated Septempber 12th from Cadbury's (CBY)Chairman, explaining that they're uninterested in the current offer from Kraft.

I had noted that the deal didn't look great for Kraft shareholders, judging by the tone management set in terms of being price-conscious. Equally displeased are Cadbury shareholders, who've been offered shares of Kraft instead of an all-cash deal. With Kraft (KFT) shares off about 8% in the last few days, the deal's value has declined and Cadbury's bargaining position may be increasing.

Cadbury shares are off only a few pennies today, as people expect either this deal to get done or another buyer to come in.

Below is the letter from Cadbury Chairman Roger Carr -->> he cites the company's success in growing both organically and through acquisitions, and points out what he considers to be superior growth opportunities as a stand-alone company. He's fighting for higher value for Cadbury shareholders, so I'm all for it.


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