Cadbury Rejects Takeover Bid From Kraft (KFT) Again

November 9, 2009 8:42 AM EST

Cadbury has rejected the renewed hostile bid from Kraft Foods on Monday after the deal was not made more beneficial for the chocolatier.

The new deal proposed that Kraft would purchase Cadbury for 717 pence per share, down from the deal that was offered in September worth 745 pence per share.

“Kraft’s offer does not come remotely close to reflecting the true value of our country,” Cadbury Chairman Roger Carr stated following the company’s refusal.

As anticipated, Kraft Foods (NYSE: KFT) announced its formal bid for a takeover of the British chocolate company Cadbury (NYSE: CBY) this morning.

The offer made by Kraft is valued at 9.8 billion pounds ($16.46 billion), or 717 pence per share of the U.K. listed company, which according to Kraft is a bid valued at 37 percent higher than the Cadbury closing price on July 3, 2009.

The details of the deal show that Kraft is offering to pay 300 pence in cash and 0.26 in new Kraft shares for each share of Cadbury. For each Cadbury ADS, Kraft will pay 1.04 new shares and 1,200 pence in cash.

"We remain convinced of the strategic merits for both companies of combining Kraft Foods and Cadbury," Kraft Foods Chairman and CEO, Irene Rosenfield stated. "We believe that our proposal offers the best immediate and long-term value for Cadbury's shareholders and for the company itself compared with any other option currently available, including Cadbury remaining independent."

The bid comes today at Kraft faced a deadline from the U.K. takeover Panel to either make a formal offer or back off for six months.

Shares for Cadbury moved down in the U.K. stock market 1.8 percent on the news to 745 pence on the news. Kraft shares are priced at $26.78 before the market opens today.

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