Cadbury boss Roger Carr blasts Kraft's 'derisory' hostile bid

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Roger Carr, chairman of Cadbury, has described Kraft's £9.8bn hostile bid as an "even more unacceptable price from the same unappealing source".

In his first interview since the formal offer was made, Mr Carr told The Sunday Telegraph: "I firmly believe this to be a derisory offer from a company that sees Cadbury as a strategic solution to fill the gaping hole of growth in their business model.''

Kraft formally announced its cash and shares bid last Monday, which valued Cadbury stock at 718p. This was 4pc lower than the company's original proposal because of a decline in the value of Kraft shares.

Mr Carr said he had spoken to a number of shareholders last week and was "very pleased" with their feedback.

"I'm sure it must have been irritating for shareholders to receive the reduced offer which was clearly in contempt of the market's previously expressed views," he said.

Cadbury shares were trading at 776p on Friday, almost 60p higher than Kraft's offer. Investors and analysts say Kraft will need to raise its bid to stand any chance of success.

Analysts at Bernstein Research are still expecting a bid of 900p, or thereabouts, to get management and shareholders on board

A number of hedge funds, including Paulson & Co, have taken stakes in the company, on the expectation of a higher offer.

It is thought that Kraft is likely to sweeten the bid with cash to win over investors. continues here

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