Sweeter offer buys Cadbury

Posted on 19 Jan 2010 by The Manufacturer

Birmingham based chocolate maker Cadbury has accepted a revised takeover bid of £11.5bn from its long term pursuer, the US food conglomerate Kraft.

The bid values the company at 840 pence per share.

“We believe the offer represents good value for Cadbury shareholders,” said Cadbury chief executive Roger Carr.
Today’s deal signals an end to a saga that first began in August last year. Kraft’s previous two bids of £9.8bn and £10.5bn for the Dairy Milk maker were both rejected as “derisory”.

Kraft has expressed a desire to protect jobs at Cadbury’s plants in both Birmingham and Bristol but union Unite has said it is “concerned” at Kraft’s levels of debt. Kraft is having to borrow £7bn for the deal.

Cadbury shareholders now have until February 2 to formally accept the offer.