Kraft pledges discipline in Cadbury pursuit

Kraft Foods said it would maintain a disciplined approach in its pursuit of Cadbury and believes the combination would provide meaningful revenue synergies and cost savings.

In a statement yesterday responding to Cadbury's defence document, Kraft said a combination with its British rival would "represent a uniquely complementary fit".

"We have heard nothing from Cadbury that surprises us," said Kraft Foods chairman and CEO Irene Rosenfeld.

"Cadbury's defence document only reinforces our belief that there is a compelling strategic and financial rationale to combining these two companies and that doing so would be in the best interest of both companies' shareholders," he added.

On Monday, Cadbury teased shareholders with the prospect of rival bids and promised bigger dividends and stronger growth as it again knocked back Kraft's hostile £10 billion offer.

Shares in Cadbury closed up 0.57 per cent at 793 pence, compared to Kraft's hostile bid worth 729 pence. Many analysts believe Kraft will need to pay 820-850 pence to win Cadbury.