Cadbury not interested in proposed business combination with Kraft

By Lisa Kerner

Charlotte, N.C., Sept. 8 - Cadbury plc rejected an offer made by Kraft Foods Inc. last week to combine the companies, according to Kraft.

Kraft proposed buying Cadbury for 300p in cash and 0.2589 of a new Kraft share per Cadbury share.

The offer values each Cadbury share at 745p, a premium of 34% over Cadbury's 90-day average share price of 555p in the period up to Sept. 4.

Kraft said the deal would create "a global powerhouse in snacks, confectionery and quick meals."

The combined company would have about $50 billion in revenues.

Despite the rejection, Kraft said it is committed to a transaction and to maintaining a dialogue with the Uxbridge, England-based confectionery company.

"We are eager to build upon Cadbury's iconic brands and strong British heritage through increased investment and innovation," said Kraft chairman and chief executive officer Irene B. Rosenfeld.

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

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