Titch
07-09-2009, 11:26 PM
http://news.bbc.co.uk/1/hi/business/8241056.stm
Cadbury shares rose almost 40% after it rejected a £10.2bn approach from Kraft Foods, sparking talk of a bidding war.
Kraft said that the purchase of the maker of Dairy Milk would protect jobs in the UK - including saving a factory earmarked for closure.
But Cadbury said the approach "fundamentally" undervalued the firm.
Analysts say Kraft may sweeten its offer. Others could enter the fray, with the prospect of Nestle and Hershey making a joint move being mooted.
"Our initial view is that this represents a competitively pitched offer, but something less than a knockout blow," said Martin Deboo at Investec.
'Strong brands'
Kraft said it wanted to create "a global powerhouse in snacks, confectionery and quick meals".
As well as Dairy Milk, Cadbury also owns the Green & Black's chocolate brand and Halls lozenges, Trident and Dentyne gum brands, and liquorice allsorts maker Bassett's. It spun off its drinks division as a separate business last year.
http://newsimg.bbc.co.uk/shared/img/o.gif
It is seeing much of its growth in emerging markets such as India and Russia.
And Cadbury said its "strong brands, unique category and geographic scope" left it confident of its future as a standalone firm.
Cadbury shares rose almost 40% after it rejected a £10.2bn approach from Kraft Foods, sparking talk of a bidding war.
Kraft said that the purchase of the maker of Dairy Milk would protect jobs in the UK - including saving a factory earmarked for closure.
But Cadbury said the approach "fundamentally" undervalued the firm.
Analysts say Kraft may sweeten its offer. Others could enter the fray, with the prospect of Nestle and Hershey making a joint move being mooted.
"Our initial view is that this represents a competitively pitched offer, but something less than a knockout blow," said Martin Deboo at Investec.
'Strong brands'
Kraft said it wanted to create "a global powerhouse in snacks, confectionery and quick meals".
As well as Dairy Milk, Cadbury also owns the Green & Black's chocolate brand and Halls lozenges, Trident and Dentyne gum brands, and liquorice allsorts maker Bassett's. It spun off its drinks division as a separate business last year.
http://newsimg.bbc.co.uk/shared/img/o.gif
It is seeing much of its growth in emerging markets such as India and Russia.
And Cadbury said its "strong brands, unique category and geographic scope" left it confident of its future as a standalone firm.