Kraft Foods continue with hostile bids for Cadbury
Kraft Foods has continued with its hostile bid to acquire Cadbury, meanwhile Nestlé has pulled out of bidding for the UK confectionery company.
Kraft, who also produce Maxwell House coffee and Philadelphia cheese, is now offering an extra 60p per share to Cadbury shareholders which is seen as an alternative to receiving Kraft shares.
Previously, the US food giant, had offered 300p and 0.26 Kraft share for every Cadbury share. This valued the company at £10.6bn, in its bid to complete acquisition.
Last week, Kraft announced that it had agreed to sell its North American pizza business to Nestlé for $3.7bn.
A spokesperson for Kraft said: "Kraft Foods is doing this because of the desire expressed by some Cadbury security holders to have a greater proportion of the offer in cash, and because Kraft Foods shareholders have expressed a desire for Kraft Foods to be more sparing in its use of undervalued Kraft Foods shares as currency for the offer."
Complete details of the offer have yet to be disclosed, but the deadline for Cadbury shareholders to respond has been extended to 2 February.
Interest in bidding for Cadbury has also been expressed by Hershey, the US chocolate maker, and Ferrero, the Italian chocolate group.
Nestlé had also been previously involved in the bidding, but in a statement last week said: "After discussions with the UK Takeover Panel regarding the potential for further speculation in respect of Cadbury, following Nestlé's recent announcements, Nestle confirms that it does not intend to make, or participate in, a formal offer for Cadbury."
