British confectionery major Cadbury today rejected the proposed buyout offer made by Kraft Foods Inc for 10.2 billion pounds, but the American food and beverage group remains hopeful of carrying forward a constructive dialogue.
Kraft Foods said in a statement that it had made a proposal to combine the two companies but the Board of Cadbury plc has rejected this proposal.
However, the statement added that, "Kraft Foods is committed to working toward a recommended transaction and to maintaining a constructive dialogue and is announcing this proposal as a means to encourage and further that process."
Kraft Foods proposed to takeover Cadbury for 300 pence in cash and 0.2589 new Kraft Foods shares per Cadbury share. This values each Cadbury share at 745 pence and valuing the firm at 10.2 billion pounds, the statement said.
The 745 pence offer for each Cadbury share represents a premium of 31 per cent over its closing price of 568 pence on Friday.
"The combination would build on Kraft Foods' position as a global powerhouse in snacks,confectionery and quick meals with a rich portfolio of iconic brands," Kraft Foods said.
Illinois-based Kraft Foods has brands like Terry's, Milka, Oreo, Ritz and LU biscuits, acobs coffees in its kitty.