Kraft Foods seeks to reel in Cadbury; bid rejected

NEW YORK Kraft Foods again launched a hostile bid for British confectionary Cadbury, according to published reports.

Kraft Foods said Monday it offered a $16.3 billion hostile takeover bid, the same price it offered Cadbury in September. Cadbury rejected the bid Monday.

"Cadbury is an exceptional standalone business," said Roger Carr, chairman of Cadbury, in a statement. "Kraft's offer does not come remotely close to reflecting the true value of our company, and involves the unattractive prospect of the absorption of Cadbury into a low-growth conglomerate business model."

Carr added that, "The repetition of a proposal which is now of less value and lower than the current Cadbury share price does not make it any more attractive. As a result, [the board] has emphatically rejected this derisory offer and has strengthened its resolve to ensure the true value of Cadbury is fully understood by all."

Kraft did not increase its bid for Cadbury before taking the matter to shareholders.