Cadbury confirms interest from other potential bidders
Cadbury has today released a defence document confirming why the company believes that the Kraft Foods bid undervalues the operation and also issued an update on trading. In what is being seen as a...Cadbury has today released a defence document confirming why the company believes that the Kraft Foods bid undervalues the operation and also issued an update on trading. In what is being seen as a significant move in the ongoing saga, Cadbury has increased long-term sales and long-term margin targets and confirmed that it expects to see double-digit growth in dividends in the short to medium term. However, it is the fact that the company has admitted contact with at least two other potential bidders which has caught the eye of the market.
Cadbury shares are up slightly today on the back of the defence document and trading update and there is a feeling in the market that the company, while not openly looking to attract an "acceptable" bid, is happy to discuss potential financial tie-ups with third parties which may prove beneficial to shareholders. In other words, the company is looking to agree a potential friendly offer from party such as Hershey or at least squeeze more money out of Kraft Foods and or any other potential bidder for the company.
It will be interesting to see how Kraft Foods reacts to this particularly positive statement and whether in fact we will see an increase in the company's opening bid.
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