Kraft Foods Inc today proposed a 10.2 billion pounds ($16.7 billion) takeover of Cadbury PLC, but said the offer was immediately rejected by the British maker of chocolate, gum and candy.
Kraft was undeterred, however, and said it would continue to seek a transaction which Cadbury's board could support.
Cadbury, which makes Cadbury chocolates, Trident and Dentyne gum and Halls and Bassett's candies, did not immediately comment.
Kraft, whose brands include Velveeta cheese product and Oreo cookies, said it had proposed paying 300 pence in cash and 0.2589 new Kraft Foods shares per Cadbury share, valuing Cadbury shares at 745 pence.
That represents a 31 percent premium over Cadbury's closing share price of 568 pence on Friday. Kraft, based in Northfield, Illinois, said the combination would create "a global powerhouse in snacks, confectionery and quick meals," with leading positions in developing markets including India, Mexico, Brazil, China and Russia.
"This proposed combination is about growth. We are eager to build upon Cadbury's iconic brands and strong British heritage through increased investment and innovation," said Irene B Rosenfeld, chairman and CEO of Kraft Foods.
