**US food company Kraft has launched a hostile bid for UK confectioner Cadbury.**Kraft announced it will offer 300 pence in cash and 0.2589 new Kraft shares for each Cadbury share, the same as it proposed in September.
Because of the drop in the value of Kraft shares, the bid is worth £9.8bn, less than it was worth in September.
Cadbury rejected the original Kraft offer, saying it “fundamentally undervalued” the company.
Kraft is now taking its offer directly to its shareholders.
Under Takeover Panel rules, Kraft had until 1700 GMT on Monday to make a new offer or walk away for six months.
‘Long-term value’
“We believe that our proposal offers the best immediate and long-term value for Cadbury’s shareholders and for the company itself compared with any other option currently available, including Cadbury remaining independent,” said Irene Rosenfeld, Kraft chairman.
As well as Dairy Milk, Cadbury also owns the Green & Black’s chocolate brand, Halls lozenges, Trident and Dentyne gum brands and liquorice allsorts maker Bassett’s.
It spun off its drinks division as a separate business last year.
Kraft’s brands include Kenco and Maxwell House coffee, Oreo biscuits, Jacobs, Terry’s Chocolate Orange and Toblerone, as well as cheese products such as Philadelphia and Dairylea.