British confectionery maker Cadbury has rejected a $10.2bn pound takeover bid from US giant Kraft Foods.
The world’s second largest manufacturer and owner of the Vegemite brand said that Cadbury has rejected an offer worth around A$20 billion that would have created a “global powerhouse in snacks, confectionery and quick meals”.
They still hope to pursue the deal, however.
“Kraft Foods today announces that it has made a proposal to the Board of Cadbury to combine the two companies,” Kraft said in a statement released on Monday.
“The Board of Cadbury has rejected this proposal. Kraft Foods is committed to working toward a recommended transaction and to maintaining a constructive dialogue and is announcing this proposal as a means to encourage and further that process.”
The current offer proposed by Kraft represents a 34% increase on Cadbury’s 90-day average share price and would see the creation of a global giant with around US$50 billion in revenue.
“This proposed combination is about growth,” Kraft Foods chairman and chief executive Irene B Rosenfeld said in the statement.
“We are eager to build upon Cadbury’s iconic brands and strong British heritage through increased investment and innovation.
Rosenfield also said Kraft hopes to engage with Board of Cadbury on a constructive basis with the goal of consummating a recommended transaction in the future.