Cadbury Steps Up Fight Against Kraft - TheStreet

Cadbury Steps Up Fight Against Kraft

Cadbury said its performance in 2009 was 'well ahead' of expectations and said Kraft's takeover bid remains unattractive.
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LONDON (

TheStreet

) --

Cadbury

(CBY)

said its 2009 "performance is well ahead of market expectations" and said

Kraft Foods'

(KFT)

takeover bid for the U.K. confectionary maker is "even more unattractive today" than when it was first posted.

Cadbury again said Kraft's offer of about $16.5 billion was "derisory" and recommended shareholders take no action on the bid.

Cadbury said its trading margin in 2009 was 13.5%, full-year dividend growth is expected to be 10%, and it is targeting 5% to 7% revenue growth in 2010.

Cadbury said Kraft's offer values it at only 12 times earnings before interest, taxes, depreciation and amortization, lower than any comparable transaction in the industry.

Cadbury said Tuesday that since Kraft's first approach in September its "stand-alone value has risen further" as global equity markets have recovered. Cadbury also noted the share prices of its peers have increased on average by 12%.

Kraft has a deadline of Feb. 2 to convince a majority of Cadbury shareholders to accept its bid.

-- Reported by Joseph Woelfel in New York.

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