Kraft Foods has shrugged off Cadbury’s final defence against its hostile takeover bid as “underwhelming” after the UK confectioner urged shareholders not to let the US food group “steal” the company.

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The Dairy Milk maker yesterday (12 January) published its second response document following the offer tabled by Kraft on 4 December. Cadbury once again rebuffed Kraft’s “wholly inadequate offer” and recommending that shareholders take no action on the offer.


Cadbury chairman Roger Carr reiterated its board’s unanimous rejection of the US food group’s GBP10.5bn (US$17bn) hostile offer.


The firm also revealed some 2009 figures and said underlying revenues had grown 5% during the year, climbing 6% rise in the second half of 2009. The company’s trading profit margin rose to 13.5% from 12%.


However, a spokesperson for Kraft yesterday said: “Cadbury’s final defence document is underwhelming. They have said very little that is new and have ducked the issue of their profitability in 2010. We continue to believe that the certainty and upside potential provided by our offer remains the best option for Cadbury’s shareholders”.

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Kraft, the maker of Milka chocolate and Terry’s Chocolate Orange, has until 19 January to raise its cash-and-shares bid that currently values Cadbury at 760p per share.


Analysts, meanwhile, have maintained that Kraft will need to raise its offer for any hope of success.


A Cadbury spokesperson insisted City rules meant it was unable to give more detailed information on its profit forecasts for 2010.


“Kraft is fully aware that Takeover Panel rules prevent any company from publishing a profit forecast that has not been verified and signed off by our auditors and financial advisers. There’s simply no possibility of doing that on the basis of just one week’s trading in 2010,” the spokesperson said.