CADBURY’s future hangs in the balance this weekend as Kraft, the American food giant, puts the finishing touches to raising its £10.5 billion bid for the chocolate maker.
The new offer, which is expected to improve Kraft’s bid from 771p per share to at least 820p, will test the resolve of Cadbury’s loyal shareholders — but many insist they will hold out for a higher price.
Kraft is expected to increase the cash component of its bid to win over investors who don’t want Kraft stock. It has until Tuesday 19th January to raise its bid, but is expected to do so tomorrow. It will then have until February 2 to secure acceptances from 50% or more of Cadbury’s shareholders. Cadbury’s big investors have said that they not accept a low-ball bid.
