Cadbury share price increases following Kraft takeover bid
7th September 2009
Cadbury has seen its shares increase significantly following its rejection of a GBP 10.2 billion takeover offer from US confectioners Kraft.
Share prices rose by more than 30 per cent after the takeover attempt by Kraft Foods, the world's second-largest food maker, had been made public.
The US firm has a leading position in markets including China, Russia and India with brands such as Toblerone, Dairylea cheese and Oreo cookies.
Kraft said in a statement to shareholders following the rejection that it was still interested in working towards a recommended transaction and maintaining a dialogue.
Responding to the announcement from its competitor, Cadbury said in a statement that its board believes the proposal 'fundamentally undervalues the group and its prospects'.
Chairman and chief executive of Kraft Irene Rosenfeld explained that the company is keen to build on Cadbury's brand image, admitting that the merger is about improving prospects for growth.