Cadbury has vowed to mount a staunch defence against an unsolicited £10.2bn ($16.7bn) takeover offer from Kraft of the US in the midst of rapid consolidation in the confectionery industry.

On Monday the confectionery group rejected a cash and stock offer from Kraft, which approached the company nearly two weeks ago, valuing it at 745p per share – a 31 per cent premium to its Friday closing price.