Kraft Foods Inc. (KFT) is set to meet Wednesday with labor representatives for Cadbury PLC's (CBY) workers to discuss its plans for the U.K. confectioner, which Nov. 9 rejected a GBP9.8 billion offer from Kraft after the U.S. food giant formalized a previous approach rather than raise it.

It will be the first face-to-face meeting that the Unite trade union has had with Kraft following various calls since Kraft's bid was launched, Unite spokeswoman Jennie Formby told Dow Jones Newswires.

Unite plans to follow up on its demands first sent to Kraft boss Irene Rosenfeld on Nov. 15, which included guarantees on jobs and sites and the preservation of full pension benefits and contributions, Formby added.

Kraft has had no direct contact with Cadbury management since an initial discussion between Rosenfeld and Cadbury chairman Roger Carr Aug. 28. Rosenfeld followed up that meeting with a letter detailing an offer, which Cadbury's board discussed before formally rejecting it a few days later as undervaluing the company and "derisory."

Kraft 's initial offer in early September was 300 pence in cash and 0.2589 new Kraft shares for each Cadbury share and originally worth GBP10.2 billion. However, by the time the U.S. company formalized it Nov. 9, on identical terms, a subsequent fall in Kraft shares and a weakened U.S. dollar meant the value of the bid had fallen to GBP9.8 billion.

At 1800 GMT, Tuesday Kraft's stock was down 0.7% at $27.16, which means its bid for Cadbury is now worth 724 pence a share and values the U.K. company at GBP9.9 billion, or $16.4 billion. Cadbury's shares closed down 0.7% at 808 pence.

-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com
Banco Bilbao Arg (NYSE:BBV)
Historical Stock Chart
Von Apr 2024 bis Mai 2024 Click Here for more Banco Bilbao Arg Charts.
Banco Bilbao Arg (NYSE:BBV)
Historical Stock Chart
Von Mai 2023 bis Mai 2024 Click Here for more Banco Bilbao Arg Charts.