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Kraft Makes Hostile Bid for Cadbury

Offer values UK company at $16.3B

By Sarah Quinn,  Newser Staff

Posted Nov 9, 2009 9:07 AM CST

(Newser) – Kraft launched a hostile bid for UK candy giant Cadbury today. The offer values the company at more than $16 billion and asks Cadbury shareholders to accept a merger that its executives rejected, the Wall Street Journal reports. Kraft, which hopes to boost sales by gaining exposure to new markets, now has 28 days to fill in Cadbury shareholders on the details of the deal. It then would have another 60 days to gather the necessary shares.

But the takeover attempt probably won't be easy. Cadbury's chairman dismissed the "derisory offer" and said it "has strengthened its resolve to ensure the true value of Cadbury is fully understood by all."

A Cadbury chocolate bar is seen at a shop in London. Kraft is seeking to merge with the UK candy maker.
A Cadbury chocolate bar is seen at a shop in London. Kraft is seeking to merge with the UK candy maker.   (AP Photo/Kirsty Wigglesworth)
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COMMENTS
Showing 3 of 7 comments
ErinORiordan
Nov 9, 2009 6:30 AM CST
Why muck up good UK chocolate with bland Americanness?!
Mr.C
Nov 9, 2009 4:33 AM CST
JoeQ
Nov 9, 2009 4:22 AM CST
Kraft has become one of those grow-or-die kind of companies. When they can't grow market share by selling superior products, they grow by buying companies instead. Its bad for consumers but great for executive bonuses. Its a shame but its another basic flaw in our whole model of publicly traded companies and company management.

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