Cadbury showcased robust 2009 results and an upbeat outlook on Tuesday in its last move to rebuff U.S. food giant Kraft Foods' (KFT.N) 10.5 billion pound ($17 billion) hostile takeover bid.
In a final defense document, the British confectioner said Kraft's "derisory" offer valued Cadbury lower than any comparable deal in the sector and that its standalone value had risen since the Kraft bid emerged last September.
"Our performance in 2009 was outstanding. We generated good revenue growth despite the weakest economic conditions in 80 years," CEO Todd Stitzer said.
Kraft's cash and share bid is currently worth 762 pence a share compared with Cadbury's closing price of 781 pence on Monday. Cadbury's share opened down 2 pence at 779 pence on Tuesday.
Investors say a winning bid needs to be 800 pence or above. Cadbury said its 2009 underlying sales rose 5 percent with the second half accelerating to 6 percent. It achieved an operating margin of 13.5 percent against a previous company forecast of 13.3 percent and said its 2009 dividend would rise 10 percent.
Cadbury Chairman Roger Carr has dismissed Kraft's offer and has questioned the ability of Kraft CEO Irene Rosenfeld to raise her bid after Kraft's top shareholder Warren Buffett warned the company not to overpay.
"Kraft's offer is even more unattractive today than it was when Kraft made its formal offer in December….Don't let Kraft steal your company with its derisory offer," Carr said.
Carr and Stitzer are confident of meeting Cadbury's longer-term targets which include annual sales growth of 5-7 percent from 2010, lifting operating margins to 16-18 percent by 2013 and achieving double-digit dividend growth for 2010 and beyond.
Last week, Swiss food group Nestle (NESN.VX) ruled itself out of a Cadbury auction.
Sources told Reuters on Monday that Italian chocolate maker Ferrero was very close to deciding on whether to make a counterbid in tandem with U.S. giant Hershey (HSY.N).
Cadbury's labor union was set to warn British lawmakers on Tuesday that a potential bidding war for the confectioner would undermine workers' rights.
