Cadbury rejects fresh takeover bid

“Our successful financial delivery and strong business model reinforce the Board’s belief in both the strategy and prospects of Cadbury as an independent company. I am confident Cadbury will deliver significant value which should accrue wholly to our shareholders.” he said.

Marion Gachoka, managing director of Cadbury’s operation in Kenya, was said to be out of the office till next week and unavailable for comment.

Local analysts however say Cadbury’s rejection of the takeover bid denies its Kenyan subsidiary—Cadbury Kenya Limited—a chance to expand its brands in the east African region, harnessing a potential market of over 126 million people.

Unions in the United Kingdom have also opposed attempts by Kraft Foods to buy Cadbury—one of Britain’s remaining industrial icons but in an attempt to cool down the growing opposition to its plans, Kraft Foods has offered to save some 500 jobs at some of Cadbury’s plants which had already laid off workers due to the global economic contraction.

Cadbury has been facing a backlash from unions which accuse it of slashing 15 per cent of its payroll-an equivalent of 8,000 jobs despite an impressive performance in 2009.

Cadbury is yet to resolve a labour dispute with its workers who accuse it of refusing to honour the final installment of a three-year annual pay increment.