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Kraft tries to keep bid panel at bay
22.09.09
Kraft moved today to try and head off the request that it should “put up or shut up” in its £10.2 billion bid for Cadbury.
The British chocolate maker has asked the Takeover Panel to require Kraft to either formalise its offer or back off for at least six months.
However, sources close to the US food giant maintained it was far too early in the bidding process. The Kraft camp disputed the notion that the first private approach to Cadbury had been made several weeks ago. The company said it was “only two weeks” since Irene Rosenfeld, the Kraft chief executive, had met Roger Carr, the Cadbury chairman, and told him of her company's interest. Kraft went public with its plan a week later.
Kraft argued that normally, it would be “four, five or six weeks” before the Panel was asked to intervene. Cadbury, it said, risked damaging the interests of its own shareholders, since by seeking a ruling now it was limiting the possibility of a white knight counter-bidder emerging.
“It will take more than two weeks for another bidder to get everything together,” Kraft added.
Reader views (1)
Kraft would do well to remember that it is bidding in London for a British company under British rules. This covered by the Panel and not by the US lawyers or law. Rogerr Carr is no fool and has done more than a few takeovers himself [Williams Holdings] so he is not going to be bullied by Kraft. Bids are highly disruptive to the target company taking up huge amounts of management time and very unsettling for the workers. Roger is right to tell them to put up or go away and do their homework first!
- James Macleod Ritchie, Oyster Bay Cove
