Kraft Foods is considering whether to make a formal offer for Cadbury Plc, said Kraft CEO Irene Rosenfeld. An acquisition of the U.K.’s Cadbury, would be a “win-win” for both companies, Rosenfeld told students at the University of Toronto, reported Bloomberg. Last week, Cadbury rejected a takeover proposal from Kraft, valued at about $16 billion, as too low. Kraft looks forward to “constructive dialogue” with Cadbury in the coming weeks, said Rosenfeld. The deal would create a more geographically diversified company, and provide a “solid entry” into India, Rosenfeld said. Kraft, known for its processed cheese and Oreo cookies, already sells products in countries including Russia and Mexico. Kraft’s acquisition of Cadbury would boost revenue growth and add to profit, Rosenfeld said. She said the combined company would have long-term earnings-per-share growth of 9 percent to 11 percent a year, compared with current projections of 7 percent to 9 percent for Kraft alone. Rosenfeld, a former president of Kraft’s Canadian unit, said she made the bid for Cadbury two weeks ago and made it public a week ago. “Kraft Foods is now ready to take the next step in our transformation,” Rosenfeld said. “The time is right.”
Kraft CEO Says Formal Bid for Cadbury Being Considered
An acquisition of the U.K.’s Cadbury, would be a “win-win” for both companies, Rosenfeld told students at the University of Toronto.
September 15, 2009