£10.2bn offer for Cadbury
Cadbury continue to receive bids from Kraft Foods after the firm's board rejected a £10.2bn proposal.
With Kenco, Oreo and Toblerone among its brands, Kraft insist that a joining of the two firms will create a "global powerhouse in snacks, confectionery and quick meals".
Kraft also claim that the deal would go some considerable way to safeguard UK manufacturing jobs and that further investment could be made in Bournville and the Somerdale facility that is earmarked for closure.
Irene Roseneld, Kraft chairman and chief executive, said "We are eager to build on Cadbury's iconic brands and strong British heritage through increased investment and innovation. The brands are highly complementary to our portfolio and would benefit from Kraft Foods' global scope and scale and array of proprietary technologies and processes".
"We would augment Kraft Foods' and Cadbury's world-class capabilities by employing 'best of both' focus, from sales and marketing to distribution and manufacturing."
Cadbury claim that the offer was rejected as it "fundamentally undervalues the group and its prospects".
They added, "The board is confident in Cadbury's standalone strategy and growth prospects as a result of its strong brands, unique category and geographic scope and the continued successful delivery of its Vision into Action plan".
Nestlé chief executive Paul Bulcke was asked it he would consider a counter offer for Cadbury and answered that it would only "add to the speculation" surrounding the deal.
