LONDON – In response to an offer made by Kraft Foods Inc. on Dec. 4, the board of directors of Cadbury plc has called it inadequate and encouraged company shareholders to reject the offer.
"We believe our shareholders should have the opportunity to reap the full rewards of the investment that has already been made in creating a platform for future improved revenue growth, enhanced profitability and high cash returns," said Roger Carr. "Cadbury will have delivered average revenue growth of 6% per annum and improved margins by 350bps for the period 2007-09. We are committed to the achievement of the higher Vision into Action targets and the creation of significant value – benefits that should fully accrue to our shareholders.
"Kraft is trying to buy Cadbury on the cheap to provide much needed growth to their unattractive low-growth conglomerate business model. Don’t let Kraft steal your company with its derisory offer."
Cadbury said its performance through the end of November was in line with expectations announced on Oct. 21. All three of the company’s business categories continued to deliver good results with continued growth in Chocolate, further improvements in Gum and excellent growth in Candy, according to the company.