Cadbury chairman calls Kraft's pounds 9.8bn bid 'derisory'.A HOSTILE takeover Hostile Takeover A takeover attempt that is strongly resisted by the target firm. Notes: Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. bid worth pounds 9.8bn from US food giant Kraft has been labelled "derisory" by Dairy Milk maker Cadbury. Kraft - the company behind brands including Dairylea and Kenco coffee - appealed directly to Cadbury's investors after its initial approach was rejected by the board in September. But it refused to improve the terms of its cash-andshares offer, which is now lower than two months ago due to falls in the Kraft share price. Cadbury chairman Roger Carr Roger Dale Carr (born July 1, 1952 in Seminole, Oklahoma) is a former National Football League wide receiver who played mainly for the Baltimore Colts. He was selected to the Pro Bowl after the 1976 season. He helped the Colts win the AFC East Division from 1975-77. said: "The board has emphatically em·phat·ic adj. 1. Expressed or performed with emphasis: responded with an emphatic "no." 2. Forceful and definite in expression or action. 3. rejected this derisory offer and has strengthened its resolve to ensure the true value of Cadbury is fully understood by all." "Kraft's offer does not come remotely close to reflecting the true value of our company." Kraft disappointed with weak third-quarter results last week - downgrading downgrading A reduction in the quality rating of a security issue, generally a bond. A downgrading may occur for various reasons including a period of losses, or increased debt service required by restructuring a firm's capital to include more debt and less revenue guidance and hitting its shares. Mr Carr added: "The repetition of a proposal which is now of less value and lower than the current Cadbury share price does not make it any more attractive." Cadbury will contact shareholders shortly with a defence document setting out why it should remain as a standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. business. Mr Carr added that a merger with Kraft represented the "unattractive prospect" of being absorbed into the US firm's "low growth conglomerate business model". Kraft is the world's second biggest food company and dates back to 1903. |
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