Cadbury Rejects Kraft Bid

Confectionary giant Cadbury has rejected a bid approach from Kraft Foods, saying the company was committed to moving forward alone.

However, despite having its $16.7bn bid rejected, Kraft told Reuters it still hoped to buy a slice of the global brand.

Cadbury’s board said it believed the offer made last Wednesday undervalued Cadbury’s real worth, despite Kraft saying a purchase would make a “global powerhouse in snacks, confectionary and quick meals”.

“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,” Cadbury’s board said in a statement today.

Cadbury’s first half performance saw the company record growth figures despite a slow start to the year, with underlying operating profit up by 16%.

Cadbury said sales in chocolate, gum and candy products were on the rise during the second quarter, helping base business to growth by 4%.