Kraft's hostile bid for Cadbury 'derisory'

A £9.8bn (€11bn) hostile takeover bid from US food giant Kraft was labelled “derisory” by Dairy Milk maker Cadbury today.

Kraft – the company behind brands including Dairylea and Kenco coffee - appealed directly to Cadbury’s investors after its initial approach was rejected by the board in September.

But it refused to improve the terms of its cash-and-shares offer, which is now lower than two months ago due to falls in the Kraft share price.

Cadbury chairman Roger Carr said: “The board has emphatically rejected this derisory offer and has strengthened its resolve to ensure the true value of Cadbury is fully understood by all.”

He added: “Kraft’s offer does not come remotely close to reflecting the true value of our company.”