Kraft Foods committed to Cadbury merger, reopens cash-and-stock offer

By Lisa Kerner

Charlotte, N.C., Dec. 4 - Kraft Foods Inc. said it will post its offer for Cadbury plc and file the U.S. offer document with the Securities and Exchange Commission on Friday.

As previously reported, Cadbury rejected the same unsolicited offer of 300p in cash and 0.2589 of a new Kraft share per Cadbury share on Nov. 9.

Kraft said each Cadbury American Depositary Share would receive 1,200p in cash and 1.0356 new Kraft shares.

The offer, based on Kraft's closing stock price on Dec. 1, values each Cadbury share at 713p, a Kraft news release said.

Acceptances of the offer will be received through 8 a.m. ET on Jan. 5.

"We remain confident that the unique combination of Kraft Foods and Cadbury would create a significant growth opportunity for both businesses," said Kraft chairman and chief executive officer Irene B. Rosenfeld.

"Our offer is fully financed, represents a substantial premium to Cadbury's unaffected share price and provides both immediate value certainty and meaningful longer-term upside potential," Rosenfeld said.

Cadbury is an Uxbridge, England-based confectionery company.

Northfield, Ill.-based Kraft is the world's second-largest food company.

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