Kraft hit back at Cadbury yesterday by claiming that a merger of the two firms would deliver more value than Cadbury could achieve on its own.

The UK firm yesterday accused Kraft, of trying to buy it “on the cheap” as it set out a robust defence against the hostile £10 billion takeover offer.

Cadbury upped its long-term performance targets and urged investors not to let Kraft “steal your company with its derisory offer”.

Kraft is also facing opposition from workers and unions keen not to see the deal go through, with an employee protest being staged yesterday.

But Kraft stood by its deal as the January 5 deadline for shareholder acceptance draws nearer.