Kraft Foods Inc. (KFT) , the world's second largest food company, said Friday that it is mailing its £10.1 billion takeover offer for Cadbury plc (CBY,CBRY.L) to the British confectioner's shareholders.
Kraft's formal offer of 300 pence cash and 0.2589 new Kraft shares for each Cadbury share is the same as a proposal outlined on September 7 and November 9.
Based on Kraft's closing stock price of US$26.50 on December 1, the offer values each Cadbury share at 713 pence. Cadbury shareholder have until January 5 to accept the offer.
Commenting on the publication of the offer documentation, Kraft Chairman and CEO Irene Rosenfeld, said, "We remain confident that the unique combination of Kraft Foods and Cadbury would create a significant growth opportunity for both businesses. That's why we believe this Offer is in the best interest of both companies' shareholders. Our Offer is fully financed, represents a substantial premium to Cadbury's unaffected share price and provides both immediate value certainty and meaningful longer-term upside potential."
London-based Cadbury, which has already rejected that price as "derisory", has 14 days, or until Dec 17, to issue its defense document, while Northfield, Illinois Kraft has until Day 46 to raise its bid. If a rival bid appears, it would trigger a new timetable.
U.S. chocolate maker Hershey Co (HSY) and Italy's Ferrero have said they are reviewing options for making a bid for Cadbury. Some analysts have also speculated that Switzerland's Nestle SA, the world's biggest food company, may be interested in Cadbury.
The combination of Kraft, maker of Oreo cookies and Milka chocolates, and Cadbury, the maker of Dairy Milk chocolates and Trident gum, would create the world's biggest confectioner, surpassing privately owned Mars-Wrigley.
Kraft shares are currently trading at $26.50, up 8 cent. Cadbury's U.S. traded shares are currently trading at $52.40, down 55 cents or 1.03% on the NYSE. In London, Cadbury shares closed Friday up 20 pence at 800.20 pence.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.