Cadbury PLC revealed Monday it has received approaches from rival suitors to Kraft Foods Inc. as the British candymaker launched a robust defence against the U.S. company’s attempts to buy it "on the cheap" with a 9.8 billion pound (US$16.3 billion) hostile bid.
Cadbury chairman Roger Carr warned shareholders not to let Kraft "steal your company with its derisory offer."
The prospect of the 195-year-old company falling into foreign ownership has caused some consternation in Britain were it is a much-loved brand–a member of Cadbury’s founding family has been publicly critical and the country’s leading labour union fears large-scale job losses.
But Carr left open the door for some kind of tie-up as executives revealed that Cadbury had been approached by a number of other suitors, which they declined to name.
Shares in Cadbury have shot up in recent weeks on the prospect of a bidding war following Kraft’s unsolicited approach. CEO Todd Stitzer confirmed Monday that the company had received "indications of interest from third parties on possible business combinations."
U.S. chocolate maker The Hershey Co. has previously said it was considering an offer alongside Italy’s Ferrero International SA. Analysts have also suggested that Nestle SA may be interested, although the Swiss company has made no comment.
"Two companies have publicly stated their interest in this company," Carr told analysts, adding that the board had made clear to both that Cadbury was not for sale, but would consider any offer that recognized the company’s full value.
"Nothing that matches that description has yet been received," Carr said. "I think there’s an entry ticket price that one needs to pay… we are a long, long, long way off that with the current position."
