Dairy products manufacturer Cadbury recently said it will post formal response to US-based Kraft Foods’ offer of 10.1 billion pounds for British confectionery on December 14. Cadbury in a statement said it would post on December 14, 2009, to shareholders its formal response to Kraft’s offer.
“Under US securities law, Cadbury is prohibited from publishing any further information, or making any further statement, until it has issued its formal response,” the statement added.
The company further said its offer also include its regular pre-close trading update. Last week, Kraft Foods has disclosed the details of its hostile bid for Cadbury, valuing the British company at 10.1 billion pounds.
In November, the board of Cadbury rejected the takeover bid from Kraft Foods and said that the bid undervalues the company. The offer values each Cadbury share at 713 pence. The bid values the entire issued and to be issued share capital of Cadbury at about 10.1 billion pounds.
For each Cadbury share, the US entity would offer 300 pence in cash and 0.2589 new Kraft Foods shares. For the Cadbury’s American Depository Share (ADS), it would offer 1,200 pence in cash and 1.0356 new Kraft Foods stocks.