Cadbury's board approves Kraft bid

19th January 2010, 10:59am

UK confectionary firm Cadbury has approved a new bid by Kraft Foods, according to media reports.

Cadbury has advised its shareholders to accept the new offer of 840 pence a share, bringing the value of the group to £11.5 billion.

Shareholders at Cadbury have until 2 February to officially secure the deal. The offer will comprise of £500 pence in cash. Kraft is expected to borrow £7 billion.

Kraft originally launched its takeover bid of 761p for Cadbury in December.

Cadbury's chief executive Roger Carr told the BBC: "We believe the offer represents good value for Cadbury shareholders…and will now work with the Kraft Foods' management to ensure the continued success and growth of the business."

Irene Rosenfeld, the chairman and chief executive of Kraft, is also very positive about the move: "We have great respect for Cadbury's brands, heritage and people. We believe they will thrive as part of Kraft Foods."

Kraft brands include Kenco, Ritz, Alpen Gold and Oreo and Cadbury brands include Dairy Milk, Flake, Crunchie and Milk Tray.

Related Articles:

• 10 Sep 2010 - Westminster debate on future of food and drink sector today
• 30 Jun 2010 - Former Kraft president joins Premier Foods
• 04 Mar 2009 - Cadbury Dairy Milk goes Fairtrade

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