Kraft may launch hostile bid for Cadbury

Confectionery giant Cadbury remained silent today amid reports that US-based food group Kraft was set to launch a hostile takeover bid for the firm.

Cadbury refused to comment to comment on a report in the Financial Times that Kraft was this weekend finalising plans to make a firm offer to Cadbury shareholders on Monday, when a “put-up or shut-up” deadline enforced by the City takeover authority expires.

The American company has until 5pm on Monday to either make a firm offer or not bid for Cadbury.

In September the Dairy Milk maker rejected a £10.2bn (€11.4bn) proposal from Philadelphia and Oreos firm Kraft, after Irene Rosenfeld, Kraft’s chief executive, made an initial approach to Cadbury chairman Roger Carr.

Cadbury rejected the initial proposal as “fundamentally” undervaluing the business.

A source close to Cadbury told the Financial Times: “We didn’t invite this. We fill a well-defined hole in the Kraft structure ... but for us they offer nothing.”

Last month the leading British chocolate producer reported a 7% growth in sales, up from 2% and 6% in the previous two quarters.

Mr Carr said the third quarter performance reaffirmed Cadbury’s confidence in remaining a “standalone confectionery business”.

Cadbury is the world’s second biggest confectionery company behind Mars, while Kraft ranks behind Nestle as the world number two food group.

A deal between the two would create a combined worldwide giant with annual sales of around $50bn (€33.6bn), according to Kraft.

Both firms declined to comment today.