Cadbury Crumbles to Kraft

Cadbury has finally crumbled to Kraft, with its board saying it will finalise the terms of a takeover bid it says is good enough to chew.

Kraft has tried for months to win over the confectionary giant’s board, which dismissed previous bids as being too low, and enjoyed strong financial results and backing from the UK Government.

Cadbury shareholders are now willing to relinquish control, with a deal that could see Cadbury’s stock worth a rumoured £11.7bn.

Cadbury and Kraft confirmed they were ironing out the terms of the agreement, and that an announcement will be made shortly.

According to a site set up by Cadbury and Kraft to handle increased traffic to company pages, Cadbury’s board recommended security holders at the company approve the final bid by Kraft of 500 pence for each Cadbury Share, 0.1874 new Kraft food shares for each Cadbury ADS 2000 pence in cash and 0.7496 new Kraft food shares.

Shareholders stand to make 840 pence per Cadbury share and £33.60 for each ADS.

Kraft’s last share offer for Cadbury valued the company at about £10.5bn.

If the takeover is finalised, the new company will be the biggest confectionary company in the world.