Keep Cadbury independent, says its chief
CADBURY chief executive Todd Stitzer yesterday said the Dairy Milk maker should remain independent, as he put his case to a group of shareholders and industry analysts.
Stitzer attempted to win shareholder support, stressing that Cadbury was on the hunt for acquisitions and not just the bid target of Kraft’s £10.2bn takeover approach.
Stitzer said his desire was “to turn the world purple”, Cadbury’s signature colour, adding “our priorities here focus on finding good quality bolt-on acquisitions”.
He said: “It should not come as a surprise to you when I say that we have a list of potential targets which we would work towards acquiring.”
Stitzer also said the group would achieve higher profitability in 2011.
One analyst said: “He was talking to the audience, but he was also talking directly to Kraft – showing we’ve got a pretty good business as it is, and a better track record.”
But other analysts were disappointed that there were no new arguments for why Cadbury should remain independent.
Industry observers believe that Kraft’s 745p a share offer significantly undervalues the group.
Billionaire US investor Warren Buffet, whose Berkshire Hathaway firm is Kraft’s largest shareholder, yesterday agreed the offer was too low, saying Kraft would have “to do a lot of things right to justify the price”.
Execution analyst Martin Dolan added: “It is now Cadbury’s task to ensure shareholders get maximum return on synergies as the chances are that Cadbury will be bought”.
FAST FACTS CADBURY
&9679; Cadbury makes Dairy Milk, Trident gum and luxury chocolate brand Green and Black’s
&9679; Last week USconsumer goods giant Kraft made a £10.2bn offer for Cadbury, which was immediately rejected