Cadbury shares higher after Kraft tie-up

"I would never say there's not some strategic sense in these businesses coming together," Cadbury's American chief executive Todd Stitzer said in an interview with The Wall Street Journal published on Monday, 21 Septmeber 2009.

Meanwhile Cadbury on Monday contacted Britain's takeover panel to ask Kraft either to make a formal takeover proposal or walk away for six months, British media reported.

Cadbury's share price was up 0.44% to 791.5 pence in London afternoon trade on Tuesday. The FTSE 100 index of leading shares rose 0.97% to 5,184.40 points.

Kraft Foods earlier this month launched an informal £10.2-billion (US$16.7-billion, €11.7-billion) bid for Cadbury, an offer deemed too low by Stitzer.

Kraft's offer was worth 745 pence per Cadbury share.

Despite the snub, Kraft has said it hopes the venerable maker of Cadbury Dairy Milk chocolate bars and Trident chewing gum, among other brands will eventually jump on board.

Kraft Foods, the world's second largest food company after Nestle, said a takeover would increase the US group's annual revenues to $50 billion a year from $42 billion presently.

It added that by combining the groups, plans for about 500 job cuts at Cadbury in Britain would be scrapped.

Kraft's leading brands include Oreo cookies, Kenco coffee and Milka chocolate.

Source: AFP

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