Cadbury Boosts Sales and Margin Forecast, Continues to Stiffarm Kraft (CBY,KFT,HSY)
Cadbury, which has already written off Kraft's offer as "wholly inadequate," issued a note of caution to its shareholders not to be lured in by the US firm that was trying to "steal" the company.
According to the Creme Egg maker's most recent update, it anticipates organic revenue growth of 5% to 7% a year over the next four years, up from its previous growth target of 4% to 6%.
The company also sees improved margins of 16% to 18% by 2013, up from its previous target of mid-teens margins by 2011.
Chairman Roger Carr made this statement, "Kraft is trying to buy Cadbury on the cheap to provide much needed growth to their unattractive low-growth conglomerate business model. Don't let Kraft steal your company with its derisory offer."
While Kraft's bid remains the only offer on the table, Cadbury has reportedly held discussions with Hershey (NYSE:HSY) and CEO Todd Stitzer said on a call that the company has gotten signs of interest from various third parties.
by Chip Brian