London - British confections company Cadbury Monday rejected a 9.8-billion-pound (16.4-billion-dollar) hostile takeover bid from US food company Kraft Inc, saying the bid did not come "remotely close" to reflecting Cadbury's true value. It is the second attempt this autumn by Kraft to purchase Cadbury. But Cadbury noted that, since Kraft's share value has diminished since the last bid, in September, Monday's proposal was worse than the bid previously rejected. Additionally, it noted no substantial change in the cash and share purchase offer from September.
"The repetition of a proposal which is now of less value and lower than the current Cadbury share price does not make it any more attractive," said Roger Carr, chairman at Cadbury.
"Kraft's offer does not come remotely close to reflecting the true value of our company, and involves the unattractive prospect of the absorption of Cadbury into a low growth conglomerate business model."
Cadbury plans later to share more details about its opposition to the deal with shareholders.
Cadbury is best known for its production of chocolates and beverages. Kraft, the world's second largest food company, is best known for its cheese products and snacks such as Oreo cookies.
"We remain convinced of the strategic merits for both companies of combining Kraft Foods and Cadbury," Kraft said in a statement.
