(RTTNews) - Packaged foods company Kraft Foods Inc.'s (KFT: News ) said Friday that its final offer price for U.K.-based confectioner Cadbury plc (CBY: News ,CBRY.L: News ) shares is currently valued at 827 pence per share plus 10 pence cash dividend.
On January 19, Kraft had issued details of its offer to acquire all the outstanding shares of Cadbury. Kraft, based on the closing share price of USD 29.58 per Kraft Foods Share on 15 January 2010, valued its offer at 840 pence per Cadbury Share and GBP 33.60 per Cadbury ADS. This excludes the special dividend of 10 pence per Cadbury Share which will be paid following the date on which the Final Offer becomes or is declared unconditional.
Excluding the special dividend of 10 pence per Cadbury share, Kraft based on its January 21 closing price of US$ 28.24 per Kraft Foods share, values the offer at 827 pence per Cadbury Share and 3,308 pence per Cadbury ADS.
In addition, the company provided information regarding the Mix and Match facility according to which Cadbury shareholders who choose to get additional cash for their Cadbury share will receive 799 pence per share and 3,195 pence per Cadbury ADS. The company noted that the cash price excludes a special dividend of 10 pence per Cadbury share. The company reached the value of 799 pence keeping December 1 closing price of US$ 26.50 Kraft's share as reference share price.
The company noted that its final offer value is currently higher than the value which Cadbury shareholders may receive if they choose for additional cash under the mix and match facility.
Earlier today, U.S. chocolate maker Hershey Co. (HSY: News ) said it would not counter-bid Kraft Foods offer to buy Cadbury. Italian chocolate maker Ferrero SpA was in talks with Hershey to jointly acquire Cadbury. But reports in early January indicated that Ferrero had ended talks with Hershey on the possibility of launching a joint bid for Cadbury.
Billionaire investor and Kraft's single largest shareholder, Warren Buffett commenting on the increased offer noted that Kraft was paying a higher price to acquire Cadbury.
KFT closed Friday down US$ 0.37 or 1.31% to US$ 27.87 on the NYSE. In after hours the stock slipped by 0.09 or 0.32% to trade at US$ 27.78.
Friday, HSY closed at US$ 36.28, up US$ 0.09 or 0.25% and CBY closed at $53.46, down $0.37 or 0.69% both on the NYSE. CBRY closed Friday at 832.5 pence, down 0.50 pence or 0.06% on the LSE.
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