Kraft posts Cadbury offer

AP News
Posted: Dec 04, 2009 9:24 AM

Kraft Foods Inc. says it has taken its 9.8 billion pound (16.3 billion) hostile share-and-cash offer for Cadbury PLC straight to shareholders of the British company.

The terms released Friday are broadly unchanged from last month's bid, which offered 300 pence in cash and 0.2589 new Kraft shares for each Cadbury share.

Cadbury, which has described the offer as "derisory," has two weeks to respond in a defence document.

Retaining the offer price it first made a month ago gives Kraft some wiggle room to increase its bid should a rival suitor emerge. U.S. chocolate company The Hershey Co. and Italy's Ferrero International SA have said they are considering an offer. Analysts also suggest Switzerland's Nestle SA may be interested.