Kraft Foods Inc. (KFT) announced Monday that it is offering 300 pence in cash and 0.2589 New Kraft Foods Shares for each Cadbury Share, the same as earlier proposed in September for Cadbury Plc (CBY, CBRY.L).
The Offer price equates to a premium of 37% over Cadbury's share price of 524 pence on 3 July 2009, prior to analyst suggestions regarding potential sector consolidation.
Based on the closing share price of US$26.78 per Kraft Foods Share on 6 November 2009, the Offer now values each Cadbury Share at 717 pence and the entire issued share capital of Cadbury at about GBP 9.8 billion.
Earlier, on September 7, Kraft Foods offered to buy Cadbury for about GBP 10.2 billion, but the maker of Dairy Milk chocolate rejected the offer immediately, stating that the proposal fundamentally undervalued the company and its prospects.
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