Kraft Makes New, Lowered Bid for Cadbury

Kraft Makes New, Lowered Bid for Cadbury


Kraft Foods Inc. has made a 9.8 billion pound ($16.4 billion) cash-and-stock offer for British candy maker Cadbury PLC.

(AP)Monday's hostile offer values each Cadbury share at 717 pence, lower than Kraft's previous rebuffed approach of 745 pence.

Kraft says the price "represents a substantial premium to the unaffected share price of Cadbury," referring to a surge in the British company's stock since Kraft's previous bid was made public in September.

Analysts had said that Kraft needed to sweeten that offer to have any chance of success.

The prospect of a tie-up has caused some consternation in Britain, where the 195-year-old Cadbury is a much-loved brand — its Dairy Milk is the country's top-selling chocolate bar.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

LONDON (AP) — Kraft Foods Inc. has made a 9.8 billion pound ($16.4 billion) cash-and-stock offer for British candy maker Cadbury PLC.

Monday's hostile offer values each Cadbury share at 717 pence, lower than Kraft's previous rebuffed approach of 745 pence.

Kraft says the price "represents a substantial premium to the unaffected share price of Cadbury," referring to a surge in the British company's stock since Kraft's previous bid was made public in September.

Analysts had said that Kraft needed to sweeten that offer to have any chance of success.

The prospect of a tie-up has caused some consternation in Britain, where the 195-year-old Cadbury is a much-loved brand — its Dairy Milk is the country's top-selling chocolate bar.

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