Cadbury to reply soon to Kraft’s bid
Kraft took the offer straight to shareholders of the British candy company on Friday. In doing so, it bypassed the Cadbury board, which had already rejected an almost identical offer last month.
Yesterday, London-based Cadbury noted it is prohibited under US securities law from making any further statement until it issues its formal response, which it said will be released alongside its previously scheduled trading update on Monday.
Kraft’s move to take the offer directly to shareholders started the clock on a series of regulatory deadlines.
It may also flush out rival bids and gives the US company some wiggle room to increase its offer, should competition emerge.
Cadbury would be an attractive acquisition. As one of the world’s largest confectionary companies, it has strong international reach, with a key presence in emerging markets.
Bidders face some strong opposition to the potential loss of the 195-year-old company’s independence. At least one member of Cadbury’s founding family has spoken out against it, and the country’s leading labor union is yet to be appeased about potential job losses.