Cadbury tells shareholders to reject Kraft bid

14 December 2009

Roger Carr, chairman of UK chocolate manufacturer Cadbury, has told shareholders they should reject Kraft's takeover bid for the company.

Last month, the Cadbury board unanimously rejected the Kraft offer, labelling its $16.2 billion bid as "derisory".

In an open letter to investors, Mr Carr again launched a further attack on the US firm.

"Kraft is trying to buy Cadbury on the cheap to provide much needed growth to their unattractive low-growth conglomerate business model," he said.

"Don't let Kraft steal your company with its derisory offer."

Cadbury has also laid out its medium-term growth predictions.

It is aiming to increase its margins by 16 to 18 per cent by 2013, as well as growing revenue by around seven per cent each year.

Earlier this month, UK trade union Unite, which represents many of the workers at Cadbury, attacked the Royal Bank of Scotland for providing Kraft with a $1 billion loan facility to help finance its proposed buy-out.

By Claire Archer

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