Kraft Stands Firm on Cadbury Offer
Kraft Foods has considered Cadbury's formal response to its offer to acquire all of the issued and to be issued share capital of Cadbury.
Cadbury Shareholders are being asked to choose between having the value certainty and upside potential of the offer versus taking the risk of continuing to own Cadbury Shares in the absence of any offer.
As outlined in Kraft Foods' offer documentation: the offer represents a substantial premium to the unaffected share price of Cadbury; Kraft Foods believes that Cadbury and Kraft Foods represent a uniquely complementary fit; Kraft Foods believes that a combination with Cadbury will provide the potential for meaningful revenue synergies and significant cost savings, delivering substantially more value than Cadbury could achieve on its own; Kraft Foods believes that its current trading and prospects are strong; however, since the announcement of its possible offer for Cadbury on Sept. 7 2009, Kraft Foods believes its share price performance has been adversely affected by a number of deal-related factors of a short-term nature, which are expected to dissipate once there is clarity over the outcome of Kraft Foods' offer.
Commenting on Cadbury's Defence Document, Chairman and CEO of Kraft Foods, Irene B. Rosenfeld, said:
"We have heard nothing from Cadbury that surprises us. Cadbury's Defence Document only reinforces our belief that there is a compelling strategic and financial rationale to combining these two companies and that doing so would be in the best interest of both companies' shareholders. Having said that, Kraft Foods will continue to maintain a disciplined approach with respect to the acquisition of Cadbury in line with the criteria outlined in our offer documentation."
Cadbury Shareholders are being asked to choose between having the value certainty and upside potential of the offer versus taking the risk of continuing to own Cadbury Shares in the absence of any offer.
As outlined in Kraft Foods' offer documentation: the offer represents a substantial premium to the unaffected share price of Cadbury; Kraft Foods believes that Cadbury and Kraft Foods represent a uniquely complementary fit; Kraft Foods believes that a combination with Cadbury will provide the potential for meaningful revenue synergies and significant cost savings, delivering substantially more value than Cadbury could achieve on its own; Kraft Foods believes that its current trading and prospects are strong; however, since the announcement of its possible offer for Cadbury on Sept. 7 2009, Kraft Foods believes its share price performance has been adversely affected by a number of deal-related factors of a short-term nature, which are expected to dissipate once there is clarity over the outcome of Kraft Foods' offer.
Commenting on Cadbury's Defence Document, Chairman and CEO of Kraft Foods, Irene B. Rosenfeld, said:
"We have heard nothing from Cadbury that surprises us. Cadbury's Defence Document only reinforces our belief that there is a compelling strategic and financial rationale to combining these two companies and that doing so would be in the best interest of both companies' shareholders. Having said that, Kraft Foods will continue to maintain a disciplined approach with respect to the acquisition of Cadbury in line with the criteria outlined in our offer documentation."