**Cadbury is to be taken over by the American food company Kraft after its board approved a new increased bid, the BBC has learned.**The Cadbury board will advise its shareholders to accept a new offer of 840 pence a share - valuing the company at £11.5bn.
Cadbury shareholders will also receive a dividend of 10 pence a share, BBC business editor Robert Peston says.
The deal will bring to an end months of animosity between the two companies.
The offer will consist of 500 pence in cash, with the rest made of Kraft shares. Kraft will borrow £7bn ($11.5bn) to finance the deal.