Cadbury agrees to improved Kraft takeover bid

A deal is expected to be announced later today after a statement from Kraft this morning said the two companies were “finalising the terms of a recommended offer”.

The new offer improves on the initial £10.5bn that Cadbury’s board described as derisory. The offer is reported to consist of £5 cash, with the rest made of Kraft shares.

Shareholders still have until 2 February to accept the deal but Cadbury chairman Roger Carr said: “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.”

Kraft chief executive Irene Rosenfeld said: “We have great respect for Cadbury’s brands, heritage and people. We believe they will thrive as part of Kraft Foods.”

Cadbury had resisted Kraft’s proposals since an initial offer was made in September.

Part of the strategy for fighting the bid was to rejig packaging buying operations to take advantage of the global scale.

Trade union Unite has expressed concerns about what the deal would mean for Cadbury’s 6,200 UK staff.

The Prime Minister has said in a press conference this morning that he wanted to maintain the firm’s levels of investment and secure jobs in the UK.

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