NEW YORK (CNNMoney.com) — Kraft Foods launched a $16.3 billion hostile takeover bid Monday for British candy company Cadbury after the deadline for the initial bid passed without a deal.
Cadbury, which initially rejected Kraft’s $16.7 billion offer in early September, spurned the deal again Monday.
“Cadbury is an exceptional standalone business,” said Roger Carr, chairman of Cadbury, in a statement. “Kraft’s offer does not come remotely close to reflecting the true value of our company, and involves the unattractive prospect of the absorption of Cadbury into a low growth conglomerate business model.”
Kraft did not increase its bid for Cadbury before taking the matter to shareholders.
The dark side of merger talk
“We remain convinced of the strategic merits for both companies of combining Kraft Foods and Cadbury,” said Kraft Chief Executive Irene Rosenfeld, in a statement. “We believe that our proposal offers the best immediate and long-term value for Cadbury’s shareholders and for the company itself compared with any other option currently available, including Cadbury remaining independent.”
Details of the offer. Kraft has 28 days to draft a proposal to Cadbury’s shareholders and 60 days to round up a majority of shareholders to vote the deal through.
Northfield, Ill.-based Kraft, a component of the Dow Jones industrial average, is offering Cadbury’s shareholders $5 in cash and 0.26 share in Kraft.
Review your policies and procedures to verify that they are written in a manner that provides for protection of the privacy of those who work with your company in any capacity. For example, make sure that you have a clear privacy policy and that the procedures for storing and safeguarding private information about your employees and customers are solid.