Kraft misses revenues, says won't overpay for Cadbury

Kraft Foods Inc, which posted weaker-than-expected quarterly revenue and cut its full-year sales forecast on Tuesday, said it would not overpay for British chocolatier Cadbury Plc.

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 3 percent.

"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. "What is relevant is what Cadbury is worth, and that will guide our actions going forward."