Cadbury brushes off potential suitor Kraft

LONDON Cadbury raised its outlook Monday after spitting out Kraft's sour hostile takeover bid.

“Kraft is trying to buy Cadbury on the cheap to provide much needed growth to their unattractive low-growth conglomerate business model,” stated Cadbury’s chairman Roger Carr. “Don’t let Kraft steal your company with its derisory offer.”

Cadbury also said Monday that it would reassess its long-term goals to include:

• Organic revenue growth of 5% to 7% per year
• Improved margins of 16% to 18% by 2013
• 80% to 90% operating cash conversion from 2010
• Double digit growth in dividends per share from 2010 onwards

“Cadbury has also built the leading position in emerging markets, which has driven significant revenue growth and which we expect to drive strong growth in the future,” the company noted.

Last week, Cadbury said it would respond to Kraft Foods' $16.5 billion hostile takeover offer, which was presented directly to Cadbury's shareholders. Last month, Kraft's bid of $16.3 billion was dismissed by Cadbury, who claimed the U.S.-based company underestimated its value.