London: British confectionery group Cadbury Plc said on Monday that it will respond next week to a hostile takeover bid from US giant Kraft Foods Inc. that was posted to shareholders before the weekend.
Kraft on Friday appealed directly to Cadbury shareholders with details of its offer, worth about £10.1 billion (Rs77,467 crore) in cash and shares.
“Cadbury notes the publication by Kraft Foods of its offer document to Cadbury’s shareholders,” the company said in a statement on Monday.
Under US securities law, Cadbury is prohibited from publishing any further information, or making any further statement, until it has issued its formal response.
“Cadbury today announces that it will post to shareholders its formal response to Kraft’s offer on 14 December. Cadbury will host a presentation in London for analysts and investors on that date, which will also include its regular pre-close trading update.”
Shareholders now have until 5 January to accept the offer, which is worth 300 pence in cash and 0.26 new Kraft Foods shares per Cadbury share.
A tie-up between Kraft and Cadbury would merge leading Kraft brands Oreo biscuits and Maxwell House coffee with Cadbury’s Dairy Milk chocolate and Trident chewing gum.
US chocolate maker Hershey and Italian peer Ferrero had said last month that they were mulling bids for Cadbury.