Cadbury issued a second defence document today giving further reasons as to why the hostile bid from Kraft was unattractive, noting that it did not match similar deals in the industry in recent years.
Andrew Wood, senior research analyst at Bernstein, said that it continues to agree with management at the UK confectionery group in relation to the company's value.
He maintains that Cadbury continues to show strong operating momentum and due to further disclosure of value enhancing results and activities Wood said another strong year is expected from the confectioner in 2010.
The Dairy Milk manufacturer, in preliminary results, reported increases in 2009 revenue and dividends and said it had seen revenue growth of five per cent for the year and six per cent for the second half. Cadbury CEO Todd Stitzer also said it is targeting revenue growth within a five to seven per cent goal range.
Meanwhile, media reports claim that two Italian banks are ready to provide the loan sought by Italian chocolate company Ferrero for a possible joint bid with Hershey for the UK confectioner.
A report in the Italian newspaper, Il Messaggero, did not cite sources but claims that UniCredit will guarantee €3bn in the deal, while Mediobanca will guarantee €1.5bn to launch a counterbid to Kraft for Cadbury.
Last week, Nestlé pulled out of the bidding for Cadbury claiming its confectionery business is large enough to enable it to compete in the global sector even if Kraft Foods takeover bid for the UK company is successful.
Nestlé said that its sights would be set on seeking smaller acquisitions in emerging markets.