SUMMARY
• Kraft Foods is pleased to announce the terms of an Offer for Cadbury
• Kraft Foods will offer to acquire the whole of the issued and to be issued share capital of Cadbury as follows:
for each Cadbury Share
300 pence in cash
and
0.2589 New Kraft Foods Shares
for each Cadbury ADS
1,200 pence in cash
and
1.0356 New Kraft Foods Shares
• The terms of Kraft Foods' Offer reflect all publicly available information on Cadbury, including its recent interim management statement
• The Offer represents a substantial premium to the unaffected share price of Cadbury
• The Offer represents an attractive multiple of Cadbury's underlying EBITDA
• Kraft Foods' current trading and prospects are strong
• Kraft Foods' estimated cost synergies have been carefully evaluated and are in line with precedent transactions, including Cadbury's acquisition of Adams
• Cadbury Shareholders will share in the benefits of a combination, including synergies, through the share element of the consideration
• No other potential offeror has publicly declared its interest in acquiring Cadbury
• Kraft Foods remains committed to maintaining a financially disciplined approach
Commenting on the Offer, Irene Rosenfeld, Chairman and CEO of Kraft Foods, said:
"We remain convinced of the strategic merits for both companies of combining Kraft Foods and Cadbury. We believe that our proposal offers the best immediate and long-term value for Cadbury's shareholders and for the company itself compared with any other option currently available, including Cadbury remaining independent."
This summary should be read in conjunction with the full text of the following announcement.