By Jenny Wiggins, Consumer Industries Correspondent
Published: January 11 2010 02:00 | Last updated: January 11 2010 02:00
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Cadbury plans to release robust 2009 sales and profit figures this week as it steps up its defence against a £10.5bn hostile takeover bid from Kraft, the US food conglomerate.
The UK-based confectionery group, which has been trying to fend off Kraft since late August when the US group made an unsolicited approach, will issue a final defence document tomorrow.
Cadbury is expected to argue that it has healthy growth prospects as an independent company, particularly in emerging markets, but is not planning on releasing new sales or profit targets or detailed figures for 2010.
The group revised its targets in December to try to win shareholder support.
It aims for revenue growth of 5 to 7 per cent between 2010 and 2013 and profit margins of 16 to 18 per cent by 2013.
Roger Carr, Cadbury’s chairman, is expected to argue that the group is positioned to deliver the stretching targets and that Kraft will have difficulty affording an acceptable offer after warnings from Warren Buffett, the investor, that the US group should not overpay.
Kraft, which last week increased the cash component of its proposed cash-and-stock offer from 300p to 360p, is understood to be thinking of adding more cash.
The US group believes that if it makes an offer valuing Cadbury at more than 800p, the UK confectioner’s board will need to consider the bid seriously.
Kraft’s offer values Cadbury, whose shares closed at 778p on Friday, at about 768p a share.
US-based Hershey and Italy’s Ferrero, which have been considering counter-offers, are running out of time before a UK Takeover Panel deadline for counterbids in late January.
It is understood that there is as yet no consensus from either Hershey or Ferrero
on whether to proceed with offers jointly or separately.
Additional reporting by Rachel Sanderson in London
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