Cadbury rejects Kraft, fights for independence

Cadbury teased shareholders with the prospect of rival bids and promised bigger dividends and stronger growth as it again knocked back a hostile 10 billion pound offer from Kraft Foods, according to Reuters. Cadbury chairman Roger Carr said Hershey and Italy''s Ferrero had both indicated they were contemplating bids, adding serious negotiations would only start if a compelling and fully financed offer emerged. The Dairy Milk chocolate maker was issuing its defense document against Kraft''s takeover bid, telling shareholders not to let the U.S. food group "steal" Cadbury and kicking off a seven-week fight for independence. British and Irish Cadbury confectionery workers are planning their own defense against the Kraft takeover campaign. They will argue that the Kraft takeover will result in job losses and pay cuts. Cadbury also dismissed the notion it would pursue Hershey as part of its defense, saying the company would not choose to pour money into the U.S. market. Under UK takeover rules, Cadbury shareholders have until February 2 to either accept or reject Kraft''s offer.