DJ CADBURY WATCH: Kraft Bid Worth 717P A Share As Of Nov 30
KFT | Quote | Chart | News | PowerRating -- U.K. confectioner Cadbury PLC ( CBY | Quote | Chart | News | PowerRating) Nov. 9 rejected a GBP9.8 billionoffer from Kraft Foods Inc. (KFT) as "derisory," after the U.S. food giant formalized its previous approach rather than raise it.
Kraft said in a statement it was offering Cadbury shareholders 300 pence in cash and 0.2589 new Kraft shares for each Cadbury share. The terms are identical to the proposal rejected by Cadbury as too low at the start of September.
The cash and share offer originally valued Cadbury at GBP10.2 billion, or 745 pence a share though a subsequent fall in Kraft's share price and the U.S. dollar has since weakened the value of the bid.
Kraft's stock closed down 0.2% at $26.58 Monday, which means its bid for Cadbury is now worth 717 pence a share and values the U.K. company at GBP9.8 billion, or $16.2 billion. Cadbury shares closed up 0.2% at 808 pence.
Since Kraft formalized its bid, U.S. candy maker Hershey Co (HSY) and Italy's Ferrero have said they are considering rival offers for Cadbury.
(END) Dow Jones Newswires
12-01-09 0349ET
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