UK-based confectioner Cadbury Plc (CBY,CBRY.L) on Friday said in a statement that the comments of its Chief Executive Officer Todd Stitzer on the Kraft Foods, Inc. (KFT) deal, made at a recent investor seminar, was misinterpreted by the press. The company issued a clarification that it has not softened its stand and stands by its position, in relation to Kraft's proposal, as set out in the letter to Kraft issued on September 12.
When asked a question about the strategic merit of Kraft Foods proposed offer for Cadbury, the press misconstrued Stitzer's remarks to imply a softening of his view regarding a combination between Kraft and Cadbury.
Uxbridge, U.K.-based Cadbury clarifies now that Stitzer does not believe that Kraft's proposal makes strategic or financial sense for Cadbury and his comments should not be interpreted in any other way. Cadbury also added that it stand by its response to Kraft offer made on September 12, whereby it reaffirmed its stand regarding the unsolicited merger proposal from Kraft, rejecting it as unattractive and fundamentally undervaluing Cadbury.
"Cadbury indicated that the next step is for Kraft to make a formal offer, at hopefully a more attractive price." Cadbury received an unofficial $16.7 billion cash-and-stock offer from Kraft, which the U.K. firm has rejected.
Meanwhile, Cadbury has earlier separately asked the U.K. Panel on Takeovers and Mergers to put Kraft on notice that the suitor must formalize its bid soon, along with committed financing. Citigroup Inc. and Deutsche Bank AG are reportedly working on setting up debt financing to cover about half of the offer amount to buy Cadbury.
In the misquoted interview, Stitzer had also stated that Cadbury shareholders oppose the deal at the price currently proposed by Kraft and wants Cadbury to concentrate on its operations unless Kraft sweetens its offer. However, a spokeswoman for Kraft said in a statement, "We have clearly outlined our strategic rationale for a possible combination with Cadbury." Several of Cadbury's largest shareholders indicated that they expected a higher offer, with some suggesting that an 850 pence offer, rather than the current 745 pence cash and shares proposal, could clinch a deal.
Kraft Foods, in early September, offered to buy Cadbury for 745 pence per share or about GBP 10.2 billion or US$16.7 billion, in cash and stock, but the maker of Dairy Milk chocolate said the offer undervalued the company, and expressed confidence in its "standalone strategy and growth prospects as a result of its strong brands, unique category and geographic scope." CBY closed Friday's regular trading session at US$51.10, down US$0.17 or 0.33% on a volume of 1.15 million shares, while KFT settled at US$26.53, up US$0.15 or 0.57% on a volume of 11.70 million shares. On the London Stock Exchange, CBRY.L closed at 800.50 pence, up 5.50 pence or 0.69% on a volume of 6.13 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.