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Guest Disposable Heroes

Willy Wonker

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* Kraft made 10.2 bln stg ($16.66 bln) offer for Cadbury

* Says cash, share offer values Cadbury at 745 p/share

* Cadbury rejected bid but Kraft still hopes to agree deal

* Combined group would have sales of about $50 bln

* Cadbury shares surge 35 pct

LONDON, Sept 7 (Reuters) - Britain's Cadbury (CBRY.L), the world's second biggest confectionery group, has rejected a $16.7 billion bid approach by Kraft Foods Inc (KFT.N) but North America's biggest food group still hopes it can clinch a deal.

Kraft said on Monday it had offered 300 pence in cash and 0.2589 new Kraft shares for each Cadbury share in the hope that it can create a "global powerhouse in snacks, confectionery and quick meals" with combined revenues of about $50 billion.

Cadbury shares jumped 36 percent to 778 pence at the open, helping lift the European food and consumer goods sector, with Anglo-Dutch giant Unilever (ULVR.L)(UNc.AS) up 2.6 percent and Nestle (NESN.VX), the world's biggest food group, up 0.7 percent.

Based on Kraft's own closing share price of $28.10 on Sept. 4 and a sterling exchange rate of $1.6346, the offer values each Cadbury share at 745 pence and the company as a whole at 10.2 billion pounds ($16.66 billion).

The offer is a 31 percent premium to Cadbury's closing share price of 568 pence on Sept. 4, Kraft said.

Cadbury declined to comment on the statement from Kraft.

Cadbury's board had rejected the proposal, Kraft said in a statement, adding that it was "committed to working toward a recommended transaction and to maintaining a constructive dialogue". The U.S. company said it had published details of its approach in order to "encourage and further that process". Continued...

http://www.reuters.com/article/mergersNews...752424720090907

Edited by DisposableHeroes

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