Kraft Foods makes offer to acquire Cadbury PLC
| RP news wires |
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Kraft Foods on November 9 announced the terms of an offer to acquire Cadbury .
Kraft Foods will offer to acquire the whole of the issued and to be issued share capital of Cadbury as follows:
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for each Cadbury Share |
300 pence in cash
and
0.2589 New Kraft Foods Shares |
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for each Cadbury ADS |
1,200 pence in cash
and
1.0356 New Kraft Foods Shares |
The terms of Kraft Foods' offer reflect all publicly available information on Cadbury, including its recent interim management statement. The offer represents a substantial premium to the unaffected share price of Cadbury.
Kraft Foods' estimated cost synergies have been carefully evaluated and are in line with precedent transactions, including Cadbury's acquisition of Adams.
Commenting on the Offer, Irene Rosenfeld, chairman and CEO of Kraft Foods, said: "We remain convinced of the strategic merits for both companies of combining Kraft Foods and Cadbury. We believe that our proposal offers the best immediate and long-term value for Cadbury's shareholders and for the company itself compared with any other option currently available, including Cadbury remaining independent."