September 30, 2009

Kraft given ultimatum on Cadbury

The Takeover Panel in Britain has given Kraft Food Inc. until November 9 to make its intentions clear regarding a possible takeover of Cadbury PLC.

The Takeover Panel in London, essentially decreed it was time to put up or shut up, The Times of London reported Wednesday. If an offer is not made clear by the deadline, Kraft is to walk away from its pursuit of the British confectioner, The Times reported.

Cadbury, which recently rejected a $16.3 billion takeover bid from Kraft, said the U.S. company's offer made no strategic or financial sense for Cadbury and fundamentally undervalued the group and its prospects.

Chairman of Cadbury Roger Carr said, Cadbury has a strong position in the global confectionery market and the board is confident in Cadbury's standalone pure play strategy and growth prospects.

The Takeover Panel said Wednesday, each side has accepted this ruling, which allows for a six-month hiatus if Kraft does not make its intentions clear by Nov. 9.