Cadbury agrees to Kraft takeover bid
Cadbury is to be taken over by the US food company Kraft after its board approved a new increased bid.
The Cadbury board has advised its shareholders to accept a new offer of 840 pence a share – valuing the company at £11.5bn ($18.9bn).
Kraft said the deal would create a “global confectionery leader”.
But there are renewed fears over possible job cuts at Cadbury’s UK operations as a result of the agreed takeover.
Shareholders have until 2 February to give the deal their backing, with the US confectioner Hershey apparently out of the race.
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.
“We believe the offer represents good value for Cadbury shareholders… and will now work with the Kraft Foods’ management to ensure the continued success and growth of the business,” said Cadbury’s chairman Roger Carr.
Irene Rosenfeld, the chairman and chief executive of Kraft Foods, said the deal was good news for shareholders and staff.
“We have great respect for Cadbury’s brands, heritage and people,” she said. “We believe they will thrive as part of Kraft Foods.”
This article was sourced from the BBC – http://www.bbc.co.uk/