Kraft deadline looms as Cadbury awaits next move

Two months ago, US food giant Kraft, which is renowned for brands such as Kenco coffee and Oreo biscuits, approached Cadbury with an informal £10.2 billion takeover offer, which the UK confectioner later rejected.

Roger Carr, chairman of Cadbury, described its US rival’s £10.2 billion takeover offer as an “unappealing” and “unattractive prospect”.

However, under takeover rules, the US food company has until 1700 GMT today to make a firm offer or abandon the offer altogether.

However, reports suggest that Kraft will make a hostile bid directly to shareholders, and Cadbury will resist the approach.

A report in the Sunday Telegraph said Roger Carr has met most of the company’s top 50 shareholders to persuade them against Kraft’s offer.

Kraft’s original approach was worth 745p per Cadbury share.

Last week, Kraft posted weak third-quarter results, which knocked the value of its cash-and shares approach for Cadbury.

Cadbury, which as well as Dairy Milk, owns the Green & Black’s chocolate brand, Halls lozenges, Trident and Dentyne gum brands and liquorice allsorts maker Bassett’s, is said to be looking for a price of at least 850p a share before even entering into discussions.

In early trading today, Cadbury shares rose 0.5% to 761.5p as the takeover deadline loomed.

Dairy Milk is the UK’s top-selling chocolate bar with more than 250 million sold every year in more than 30 countries.

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