Cadbury Rejects Kraft’s Hostile Takeover Bid

Cadbury rejected a hostile takeover bid from US food group Kraft yesterday and described the offer as “derisory”.

On the same day, US hedge fund manager John Paulson, who made billions betting on the US sub-prime mortgage crash, doubled his stake in the company to 2.08%.

Kraft’s bid for Cadbury was the same cash and stock offer originally put forward in September but because of Kraft’s falling share price the value has dropped to £9.8bn.

On 10 November, Cadbury shares closed at 763p, down from its high of more than 800p at the start of October on rumours that Kraft would raise its bid, according to The Times.