Wednesday, January 13, 2010

Kraft and Cadbury

Kraft (KFT) filed an 8-K today raising its earnings guidance. In the filing the company's CEO also had this to say:

"As we complete our turnaround, we’re delivering high-quality earnings growth, despite the difficult economic environment,” said Kraft Foods’ Chairman and CEO Irene Rosenfeld. “And we’re doing this while continuing to invest in our brands and businesses. As a result, we’re well positioned to deliver sustainable top-tier performance, with or without Cadbury."

With Cadbury (ADR: CBY) publishing a similar statement yesterday...both company's seem to be trying to win the "I'll be just fine without the other" PR battle.

Commenting on the 2009 performance, Todd Stitzer, Cadbury's CEO said: "Our performance in 2009 was outstanding. We generated good revenue growth despite the weakest economic conditions in 80 years."

The statement by Cadbury also gives more reasons why it believes the Kraft offer is still very unattractive.

Adam

Long position in KFT

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