Cadbury halts speculation over takeover stance
Cadbury today sought to dismiss mounting speculation that chief executive Todd Stitzer is softening his stance to a takeover by America’s Kraft Foods.
In a statement to the stock exchange the chocolate maker said: “For the avoidance of doubt Mr Stitzer does not believe that Kraft’s proposal makes strategic or financial sense for Cadbury and his comments should not be interpreted in any other way.
“Cadbury’s position in relation to Kraft’s proposal remains precisely as set out in the letter to Kraft issued on 12 September.”
The statement was issued after discussions with the Takeover Panel. It follows remarks made by Mr Stitzer in an interview with the Wall Street Journal at the beginning of the week when he said he saw some strategic sense in a combination of the two businesses.
The company has stressed he was speaking from an investor perspective and that the comments had been taken out of context.
The pot was further stirred following after Mr Stitzer talked to investors at Bank of America/Merrill Lynch conference on Wednesday. He was cited in a research note distributed by the bank looking at the strategic sense of a deal and potential valuations for Cadbury.
The bank subsequently clarified the note, saying Mr Stitzer’s comments on valuation were only made in the context of comparable transactions in the industry and did not imply a fair value for Cadbury.
Kraft launched a cash and share proposal for Cadbury on 7 September, going public in an attempt to keep the cholatier talking about a deal, which was worth £10.2 billion although Kraft’s share price has subsequently fallen.
Cadbury has dismissed the proposal and asked the Takeover Panel to issue a “put up or shut up” deadline on Kraft that will force the US group to either table a hostile takeover bid or walk away.
In pictures: Saturn images from Cassini probe as it prepares to turn lens towards Earth
Serena Williams apologises after comment that rape victim 'shouldn't have put herself in that position'
FBI finds possible human remains at former home of late gangster James Burke - the man who inspired Goodfellas
'Theres something quite unpleasant going on': Nigel Farage confronted for second time on visit to Scotland
World news in pictures
- 1 Bankers could face jail after report urges the Government to introduce new criminal offence for reckless management
- 2 Breaking the Silence: In the reality of occupation, there are no Palestinian civilians – only potential terrorists
- 3 Richard Nieuwenhuizen death: Six teenagers and 50-year-old father convicted of manslaughter in shocking case of referee killed over a game of football
- 4 Exclusive: Newcastle's star talent-spotter on brink as Joe Kinnear sparks walkout
- 5 Vast methane 'plumes' seen in Arctic ocean as sea ice retreats
iJobs Money & Business
£500 - £600 per day: Orgtel: FX Options Front Office Java / C# Developer - Ba...
£600 - £700 per day: Orgtel: Project Manager - Front Office - Regulatory IT C...
£600 - £750 per day: Orgtel: FATCA Project Manager - Banking - London - £600-...
£550 - £600 per day: Orgtel: Fidessa Analyst / PM - Banking - London - Up to £...