Kraft Offers Lower Price To Cadbury Shareholders Who Choose Cash Option
January 25, 2010 6:24 AM
Kraft Foods Inc (NYSE: KFT) reported on Monday that any shareholders who choose to receive only cash under the mix and match facility in its buyout offer for Cadbury PLC (NYSE: CBY) will only receive 799 pence per share for their stock, although the combined offer of cash and Kraft shares is currently worth 827 pence per share.
The company said that for "certain legal and technical reasons" it wasn't able to update the exchange rate in the mix and match facility, which will allow some Cadbury holders to receive just cash if others choose to receive only Kraft stock.
"Cadbury Securityholders who prefer cash to new Kraft Foods shares may be able to realise greater value by accepting the basic terms of the final offer and then selling their new Kraft Foods Shares in the market," the company said.
Shareholders of Cadbury's American Depository Shares would receive only 3,195 pence under the mix and match facility, while the combined cash and stock offer is currently worth 3,308 pence.
