) --



Saturday provided further explanation of why it remains sour on

Kraft Foods'



$16.7 billion takeover offer


In a letter to his counterpart at Kraft, Cadbury Chairman Roger Carr said Kraft's conglomerate business model doesn't mesh with Cadbury's more-focused business. He also reiterated his board's view that the proposed deal undervalues Cadbury.

"I would emphasize that the delivery of value to our shareholders remains at the top of our agenda," wrote Carr in

the letter

, which Cadbury published on its Web site Saturday. "Your proposal is for Cadbury shareholders to exchange shares in a pure-play confectionery business for cash and shares in Kraft, a company with a considerably less focused business mix and historically lower growth."

In Cadbury's first public statement regarding the offer, on Monday, it did not comment upon Kraft's business model.

In the letter published Saturday, Carr wrote that the proposal is of "uncertain" value for Cadbury shareholders "as underlined by the movement in the Kraft share price since your announcement."

Kraft shares closed Friday's session at $26.10, down $2, or 7%, from their closing level the previous Friday, before the offer was made public.

Northfield, Ill.-based Kraft offered offered 300 pence ($4.91) in cash plus 0.2589 new Kraft Food shares for each Cadbury share.

Cadbury's U.S. shares surged on the news of Kraft's proposal and on speculation that other bidders for the London-based candy maker might emerge. The stock ended the week at $51.82, up 38% from the previous Friday.

-- Written by a TSC staff member


This article was written by a staff member of