U.K. confectionary group Cadbury PLC (CBY) insisted Friday its chief executive does not believe a GBP10.2 billion bid from Kraft Foods Inc (KFT) makes strategic or financial sense for Cadbury and there has been no softening of the company's stance on the offer's merits.

In a brief statement the company claimed Chief Executive Todd Stitzer's comments at an investor conference this week had been "misconstrued."

"For the avoidance of doubt, Mr. Stitzer does not believe that Kraft's proposal makes strategic or financial sense for Cadbury and his comments should not be interpreted in any other way," the company said.

The clarification follows alleged comments by Stitzer at an investor conference earlier this week.

In a note to clients, Bank Of America analyst Simon Archer said Stitzer had told investors at a private meeting in London that he doesn't expect Kraft Foods Inc. (KFT) to walk away from its bid for the U.K. confectioner and sees his responsibility as getting as much value as possible from a deal.

The note also said that Stitzer claimed the deal made "strategic sense", echoing comments he made to the Wall Street Journal earlier in the week.

Earlier Friday Cadbury was reported to be in talks with U.K. regulator The Takeover Panel over a "misrepresentation" of Stitzer's remarks. The talks with the U.K. regulator are likely to have prompted the "clarification" by Cadbury.

Shares in the U.K. confectionary company were little moved by the announcement, up 6 pence, or 0.7%, at 801 pence by close of trade.

On Sept 7, Kraft, based in Northfield, Ill., offered to pay 300 pence in cash and 0.2589 new Kraft Foods shares for each Cadbury share - valuing the U.K. company's share capital at GBP10.2 billion.

The bid was originally valued at 745 pence per Cadbury share, though a fall in Kraft's share price since the announcement means that valuation is now closer to 700 pence.

Cadbury will be hoping Friday's statement will draw a line under the matter. The question of what Stitzer did or didn't say at a private meeting with investors has dominated media coverage of the Cadbury bid process over the last few days.

"Cadbury are clarifying remarks which may or may not have been made and are not particularly germane to the process anyway," said Investec analyst Martin Deboo.

"We're back now to where we were, said Charles Stanley's Jeremy Batstone-Carr. He agreed the story about the Stitzer's alleged comments have had little impact on the actual bid.

Analysts have said from the drama's outset that Kraft's bid makes strategic sense, while the price Stitzer reportedly "named" as fair at Wednesday presentation is sufficiently full to show that he values Cadbury highly.

Analysts instead are looking to U.K. market regulator The Takeover Panel for the next catalyst in the bid process.

Cadbury approached the Panel earlier this week to request a "put-up-or-shut-up" order, which provide a deadline for Kraft to either make a bid or walk away from a deal for six months.

Batstone-Carr expects the Takevover Panel to issue the order and give Kraft "a month or so" to make a decision.

"For Cadbury's management there remains a few nervous weeks before its resolved," he said.

Company Web site: www.cadbury.com

-By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278; michael.carolan@dowjones.com