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Kraft Foods is continuing with a bid to buy Cadbury after the confectionery firm's board rejected a £10.2bn proposal.

US food giant Kraft, which counts Kenco, Oreo, and Toblerone among its brands, said combining the two firms would create a "global powerhouse in snacks, confectionery and quick meals" and create a rich portfolio of brands.

Kraft said the deal would help save UK manufacturing jobs and that it would be in a position to invest in Bournville and continue operations at the Somerdale facility that is earmarked for closure.

The £10.2bn offer values Cadbury shares at £7.45 each and represents at 42% premium on the share price at the beginning of July, Kraft said in a statement, and 31% higher than at the close of trade on Friday (4 September).

Kraft chairman and chief executive Irene Rosenfeld said the proposition was about growth and would continued to engage with the company "with the goal of consummating a recommended transaction".

"We are eager to build on Cadbury's iconic brands and strong British heritage through increased investment and innovation. The brands are highly complementary to our portfolio and would benefit from Kraft Foods' global scope and scale and array of proprietary technologies and processes," she said.

"We would augment Kraft Foods' and Cadbury's world-class capabilities by employing 'best of both' focus, from sales and marketing to distribution and manufacturing."

Cadbury said in a statement it had rejected the proposal that "fundamentally undervalues the group and its prospects".

"The board is confident in Cadbury’s standalone strategy and growth prospects as a result of its strong brands, unique category and geographic scope and the continued successful delivery of its Vision into Action plan," Cadbury said.

In a press conference at the launch of its Chocolate Centre of Excellence, Nestlé chief executive Paul Bulcke was asked it he would consider a counter offer for Cadbury.

He declined to comment saying it would only "add to the speculation" surrounding the deal.