London, Sep 7: Kraft Foods Inc, the American food giant on Monday, Sep 7, said that it had approched Cadbury PLC with $16.7 billion merger bid, but the British company immediately rejected the offer.
Kraft, whose brands include Velveeta cheese product and Oreo cookies, said it had proposed paying 300 pence in cash and 0.2589 new Kraft Foods shares per Cadbury share, valuing Cadbury shares at 745 pence.
Kraft, based in Northfield, Illinois, said the combination would create "a global powerhouse in snacks, confectionery and quick meals, with leading positions in developing markets including India, Mexico, Brazil, China and Russia."
"This proposed combination is about growth. We are eager to build upon Cadbury's iconic brands and strong British heritage through increased investment and innovation," said Irene B Rosenfeld, chairman and CEO of Kraft Foods.