Cadbury set to publish formal defence

By DAILY MAIL REPORTER
Updated:

Cadbury has been talking with US rival Hershey as it prepares a formal defence to Kraft's hostile bid. The discussions could lead to a friendly takeover offer.

However no immediate news on any 'White Knight' bidders is expected today, when Cadbury publishes its defence to Kraft's £10.1billion proposal.

Cadbury is expected to play up its heritage and growth prospects in emerging markets such as India.

Cadbury's Bournville factory

Defensive play: Cadbury is expected to emphasise its heritage and growth prospects in emerging markets


The Crunchie and Flake maker has been garnering increasing support in its attempt to fend off Kraft's acquisitive chief Irene Rosenfeld.

On Friday Prime Minister Gordon Brown said he did not want to see a 'hostile bid for Cadbury which is an asset-stripping bid,' echoing previous statements from Business Secretary Lord Mandelson.

The firm is likely to play on fears that investors will see muted growth if the firm is swallowed up by a debt-laden and sluggish corporate giant like Kraft.

Credit Suisse analysts say Cadbury's board would be 'failing' in their duties if they accepted anything south of 850p. Kraft's move valued Cadbury at 718p.

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