Cadbury PLC (NYSE: CBY) announced Tuesday that the company expects its full-year results will beat analysts’ estimates and pledged a 10 percent increase in dividend payments, according to Associated Press.
The British candy maker continued its defense against Kraft (NYSE: KFT)’s hostile takeover bid, saying the $10.5 billion pound ($16.5 billion) offer was too low.
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Shares in the British company were down 0.6 percent at 776.5 pence at midday on the London Stock Exchange, compared to Kraft's offer of 763 pence per share.
Kraft has until Jan. 19 to raise its offer, while the deadline for winning acceptances from a majority of Cadbury shareholders is Feb. 2.
Cadbury plans to release a preliminary report of its 2009 earnings on Thursday in hopes of convincing shareholders not to accept Kraft's current offer.
Cadbury said they will pay dividends totaling 18 pence a share in 2009, a 10 percent increase from 2008.
Cadbury said Kraft's offer equals 12 times earnings before interest, taxes, depreciation and amortization, while comparable transactions in the sector have ranges from 14.3 to 18.5 times EBITDA.
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