British confectionary maker Cadbury has rejected a $17.6 billion takeover offer from US food giant Kraft foods for the second time, after Kraft refused to raise the value of the deal.
Cadbury’s board chairman Roger Carr said in a statement that the bid “does not come remotely close to reflecting the true value of our company,” and regarded it as “derisory.”
“The repetition of a proposal which is now of less value and lower than the current Cadbury share price does not make it any more attractive,” Carr said.
Kraft chairman and chief executive Irene Rosenfeld hit back and said in a statement that they were “convinced of the strategic merits for both companies of combining Kraft Foods and Cadbury”.
“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,” she said.
The formal bid is worth 300 pence in cash and 0.2589 new Kraft Foods shares per Cadbury share. Kraft had until Monday (local time) to launch a formal bid or walk away for six months under British takeover rules.
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