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UPDATE 4-Kraft says won't overpay for Cadbury as rev misses

Wed Nov 4, 2009 6:20am IST
 
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* EPS $0.55 vs Wall St $0.48 view

* Revenue of $9.8 bln falls short of $10.3 bln view

* CEO says to stay disciplined in Cadbury pursuit

* Kraft gets $9 bln bridge loan for deal-RLPC

* Kraft shares fall 2.5 pct after-hours (Adds bridge loan, company comments)

By Brad Dorfman

CHICAGO, Nov 3 (Reuters) - Kraft Foods Inc (KFT.N: Quote, Profile, Research) said it would not overpay for British chocolatier Cadbury Plc (CBRY.L: Quote, Profile, Research) on Tuesday after disappointing investors by posting weaker-than-expected quarterly revenue and cutting its full-year sales forecast.

Investors in both companies had hoped strong quarterly results would bolster the value of Kraft's initial $16.7 billion cash and stock proposal, but shares in the maker of Velveeta cheese and Oreo cookies fell 2.5 percent after-hours.

"Clearly, there has been a lot of speculation about what we can afford given these parameters, but as we said before, what we can afford is not relevant," Kraft Chief Executive Irene Rosenfeld said on a conference call, referring to her resolve to maintain a disciplined approach to the deal.  Continued...

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