Kraft turns hostile in pursuit of Cadbury

LONDON, Nov. 9 (UPI) -- U.S. food giant Kraft said it would turn to shareholders to decide the fate of Cadbury, which rejected a $16.3 billion purchase offer from Kraft in September.

Kraft has not changed the terms on the offer, although the value of the offer has deflated since since September, as it includes 0.2589 of new Kraft shares -- and $4.90 in cash -- for every Cadbury share, The New York Times reported Monday. Kraft shares have dropped 4 percent since it approached Cadbury with a buyout offer, causing the value of the offer to diminish, the newspaper said.

Kraft filed the offer with the London Stock Exchange to beat a deadline imposed by British regulators, who said Kraft had until Monday to solidify its position.

With a purchase, Kraft would add valuable products to its lineup and increase inroads into emerging markets, like India, the Times said.

Cadbury Chairman Roger Carr said, "the repetition of a proposal which is now of less value and lower than the current Cadbury share price does not make it any more attractive."

In a statement, Carr said the offer "involves the unattractive prospect of the absorption of Cadbury into a low-growth conglomerate business model."