Kraft Foods is poised to launch a hostile bid for Cadbury valuing the UK confectionery business at around £11bn ($17.4bn), the Guardian reports on Monday, following a report in its Sunday sister paper The Observer.  City sources say Kraft could bid 800p a share, which could rise to 850p over the 60-day limit under UK takeover rules. Kraft is finalising a financing package to enable it to offer half the consideration in cash and half in new Kraft shares for Cadbury shareholders. The FT meanwhile reports that sterling’s fall against the US dollar has strengthened Kraft’s position. The UK’s Takeover Panel is this week expected to give the US company a deadline of 4-6 weeks for a formal offer.

This entry was posted by Gwen Robinson on Monday, September 28th, 2009 at 4:58 and is filed under Capital markets, M&A. Tagged with Cadbury, kraft. Edit this entry.