The Latest Between Kraft and Cadbury

Although this is newly old news, it's still pretty bold news.

Yesterday, Kraft Foods (processed foods manufacturing giant and wholesale food ingredients consumer) presented their second offer for the purchase of Cadbury.

And even though it didn't work the first time, Kraft tried it again, leaving Cadbury executives scratching their heads.

According to various reports, Kraft Foods offered Cadbury the same cash price per share (300p and 0.2589 Kraft shares per Cadbury share) and exchange ratio (1.6609 USD/GBP) as their offer on September 7, 2009.

Well, not really the same.

Based on current market values for Kraft Foods shares, the offer was even less attractive.

Since the first offer on September 7, Kraft share prices have fallen. As a result, this new bid is valued at 4% less than the first: the value for each Cadbury share is calculated at 717 pence (based on the Kraft share price on November 6).

Cadbury chairman, Roger Carr, was piqued by the bid,

"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.

"I am confident Cadbury will deliver significant value - which should accrue wholly to our shareholders."

Despite this blatant dismissal and rejection by Cadbury, Kraft Foods remained steadfast.

Kraft Chairman and CEO, Irene Rosenfeld, responded,

"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."

Kraft also reports that the offer "represents an attractive multiple of Cadbury's underlying EBITDA" and reminds Cadbury that "no other potential offeror has publicly declared interest" in acquiring the company.

So, the negotiation remains in states of check mate and deja vu, which coincidentally sound like great names for chocolate bars!