Cadbury Bid Moves Forward

BUSINESS DIGEST

Cadbury Bid Moves Forward
Kraft Foods takes its $16.3 billion hostile takeover offer straight to Cadbury shareholders.

By Mark Isaac Thyss
Garden of Healing®

LONDON, ENGLAND

On Friday, Kraft Foods Inc. took its $16.3 billion hostile takeover offer for Cadbury PLC straight to shareholders of the British candy company.

The deal is nearly unchanged from an earlier offer Cadbury rejected.

Kraft has now started the clock ticking on a series of regulatory deadlines to get the majority support it needs and may flush out rival bids.

Kraft announced a proposed takeover in September and formally issued the bid in November. Cadbury immediately rejected the offer, saying it undervalued the company.

Cadbury declined to comment on the offer but has been clear about its disinterest at this price. Under British regulations, Cadbury has two weeks to give a formal response to the offer before shareholders.

Retaining the original offer gives Kraft some wiggle room to increase its bid should a rival suitor emerge.

Kraft wants to get the majority shareholder votes by January 5, but can take until February to complete the process under regulations.

U.S. chocolate company The Hershey Company and Italy's Ferrero International SA have said they are considering an offer.

Cadbury PLC is the world's second-largest candy maker. It is an attractive acquisition for any of the companies.

Kraft, the world's second-largest food maker, said the acquisition could lift its revenue and earnings.

Cadbury is one of the world's largest confectionary companies and has strong international reach, with a key presence in emerging markets.


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