Cadbury to rebuff bid from Kraft in a week

Cadbury announced today that on 14 December it will post a formal response to Kraft's £10.1 billion takeover bid which was sent to shareholders on Friday.

The board is expected to play the nationalistic card in its appeal to shareholders to turn down the bid. Chief executive Todd Stitzer has already flagged up Cadbury's "unique British heritage" and ethical credentials, such as the £45 million Cadbury Cocoa Partnership, which gave Fairtrade accreditation to Dairy Milk in July.

Cadbury's defence document, to be published on the same day as its fourth-quarter trading update, is also expected to outline a bullish forecast for future sales.

Cadbury's shares have risen more than 40% since Kraft announced its interest in September.