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Cadbury to reject Kraft next week

CADBURY yesterday issued a blunt statement saying it would make a formal response to Kraft&rsquo;s hostile bid next week, alongside its end of year trading figures.<br /><br />Due to US securities laws &ldquo;Cadbury is prohibited from publishing any further information, or making any further statement, until it has issued its formal response,&rdquo; the group said.<br /><br />The British Dairy Milk maker has already called the &pound;9.8bn offer of 300p in cash and 0.2589 Kraft shares &ldquo;derisory&rdquo; &ndash; but US&nbsp; rival Kraft has pressed on with its hostile offer and gone directly to shareholders.<br /><br />Since tabling the offer, US confectionery firm Hershey has said it is weighing its options, as is Nutella maker Ferrero.<br /><br />But analysts are carefully watching Nestl&eacute;, which has enough firepower&nbsp; to easily swallow Cadbury, though it is&nbsp; cautious it may face anti-trust issues. <br /><br />Hershey is also believed to have contacted Nestl&eacute; about running a joint-bid which could see Cadbury calved up between them.<br /><br />Meanwhile, Nestl&eacute; yesterday announced it would make its Kit-Kat bars Fairtrade. <br /><br />The move will not alter the price of the snack, but will mean cocoa farmers in the Ivory Coast will get a fairer price.