Kraft made its initial proposal on 28 August after a meeting earlier that day between Irene Rosenfeld, Kraft chairman and chief executive, and Roger Carr, chairman of Cadbury.
Cadbury’s board had rejected the proposal, Kraft said, adding that it was “committed to working toward a recommended transaction and to maintaining a constructive dialogue”. The company said it had published details of its approach in order to “encourage and further that process”.
“This proposed combination is about growth,” said Rosenfeld in a statement. “As we have done, Cadbury has built wonderful brands by focusing on quality, innovation and marketing, but we believe the next stage in Cadbury’s development will be challenging, given the increased importance of scale in the industry.”
Cadbury suffered an unexpected fall in gum sales in the US in the first quarter as the recession hit discretionary spending at convenience stores. In addition, it’s facing increasing competition from Mars, which last year acquired Wrigley, the world’s biggest chewing gum manufacturer.
Read the Kraft Foods official release here.
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