Cadbury says Kraft bid makes 'strategic sense'
Cadbury has detailed benefits from a takeover by Kraft. Photo: Getty Images
Cadbury has detailed benefits from a takeover by Kraft and discussed valuations with investors, a sign it is warming to a deal which would create the world's largest confectioner.
The £10bn (€11bn) approach -- which Cadbury has rejected as too low -- made "some strategic sense", the British firm's chief executive, Todd Stitzer, said, according to a Bank of America/Merrill Lynch note.
"Todd admitted that there is some strategic sense in combining the two companies and he doesn't expect Kraft to walk away, so he said his job is to get as much value as possible," the note said.
The note was published by sales specialist Simon Archer and was based on Mr Stitzer's remarks at a closed investor conference in London.
Shareholders in both groups focused on the fair value of the deal, and whether Kraft should raise its offer, which is worth 716p per share at current values.
"I do not think this price reflects the value of the company," said Cadbury shareholder David Carr, chief investment officer of Oak Value Capital Management.
"I have a lot of respect for Todd Stitzer. He is a great manager and has a good vision of investing in the business for the long term," said Mr Carr, who owns 65,000 American depository shares of Cadbury. (Reuters)
