Cadbury chairman's plea to shareholders

Cadbury chairman Roger Carr today launched a fightback, warning shareholders: "Don't let Kraft steal your company."

Mr Carr said Kraft's hostile takeover was "even more unattractive" today than it was when it made its formal offer in December.

He said the US food giant's bid was "significantly below" what it should be, dismissing it as a "derisory offer".

The Birmingham-based Dairy Milk and Creme Egg maker unveiled its defence document setting out details of its "outstanding trading" in 2009 – as well as forecasting sales growth of up to seven per cent this year.

Cadbury, with its historic home in Bournville and employing 2,500 people in the West Midlands, re-stated its case to remain as a stand alone business.

Shareholders have until February 2 to accept Kraft's takeover offer, which values the UK firm at around £10.5 billion.

Mr Carr said: "Our 2009 performance is ahead of our previously upgraded expectations and we have excellent momentum going into 2010."

Cadbury chief executive Todd Stitzer said the firm's value as an independent business had been boosted by its performance over the second half of the year, with revenues up six per cent in the period and by five per cent over the whole of 2009.

"Our performance in 2009 was outstanding," he said.

The company gave a sweetener to shareholders, saying it expected growth of 10 per cent in its full-year dividend payment.

Looking ahead, Mr Stitzer said the firm was targeting revenue growth of between five per cent and seven per cent in 2010 driven by new products and marketing investment.

Kraft has until next Tuesday to decide whether to raise its bid – currently at 763p a share – with an offer of more than 800p thought to be the minimum needed to have any chance of enticing Cadbury shareholders.