{"id":185271,"date":"2010-01-15T11:10:00","date_gmt":"2010-01-15T16:10:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-6179275495345329948"},"modified":"2010-01-15T12:22:11","modified_gmt":"2010-01-15T17:22:11","slug":"press-association-pay-more-to-win-cadbury-kraft-told","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/185271","title":{"rendered":"PRESS ASSOCIATION: Pay more to win Cadbury, Kraft told"},"content":{"rendered":"

(UKPA) \u2013 10 minutes ago<\/p>\n

<\/span>\"Fishpond\"<\/a>
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A major shareholder in Dairy Milk maker Cadbury said US food giant Kraft would have to pay more to succeed in its hostile takeover bid.<\/p>\n

The warning from Legal & General Investment Management (LGIM) comes after efforts this week by Kraft chief executive Irene Rosenfeld to win institutional support for the takeover, currently worth \u00a310.5 billion.<\/p>\n

But LGIM, which owns more than 5% of Cadbury’s shares, said: “Our position on Cadbury is unchanged; we continue to believe that the current Kraft bid does not reflect the long term value offered by the company on a stand alone basis.”<\/p>\n

Kraft – whose products range from Oreo cookies to Toblerone chocolate – has so far increased the cash portion of its offer without raising the overall bid, but has until January 19 to sweeten the deal.<\/p>\n

The firm is under pressure not to over-pay for Cadbury from its biggest investor<\/a>, billionaire Warren Buffett, who owns around 10% of the company through his Berkshire Hathaway investment firm.<\/p>\n

Cadbury’s shares are currently trading well above the value of the US firm’s offer – a sign that markets expect an increased bid.<\/p>\n

The company set out its case for independence on Thursday with detailed trading figures<\/a> on an “outstanding” 2009.<\/p>\n

It again urged shareholders to shun US food giant Kraft’s “derisory” hostile bid as it reported good growth across its chocolate, sweets and gum divisions despite “mixed” trading conditions.<\/p>\n

The bullish defence came amid reports that another US firm, Hershey, is set to challenge Kraft with a counter-bid for Cadbury<\/a> although a formal offer has yet to emerge.<\/p>\n

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