"The offer is worse than the
proposal the board previously rejected as fundamentally undervaluing Cadbury and its prospects," the board said in a statement, and chairman Roger Carr called it "derisory." Kraft's shares, which will
finance 60% of the deal, have fallen slightly since the initial offer.
But Morningstar analyst Erin Swanson says that Cadbury shareholders may take a Kraft offer rather than hold on to Cadbury shares that are likely to drop, at least in the short term, if the bid fails. "That's the trade-off Cadbury shareholders will be forced to consider," says Edward Jones analyst Matt Arnold.
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