Kraft set to raise Cadbury bid
Kraft is reportedly looking to extend the deadline for shareholders to respond to its takeover bid for Cadbury, as it prepares an increased bid for the company.
According to various reports, the US food giant will look to slightly increase its offer to help win the support of more Cadbury shareholders. Its current bid values the company at around 740p per share, which Cadbury has claimed is “derisory”.
Cadbury shareholders currently have until tomorrow (5 January) to respond to the offer. Kraft says they would be taking a risk if they support Cadbury’s independence. This deadline would be extended by another two weeks, should Kraft put another offer on the table.
Its current bid was made in December, valuing the UK confectioner at £10.1bn ($16.8bn) . Cadbury says this was an attempt “to buy Cadbury on the cheap” . It has been pursuing the UK company since September last year .
Hershey and Ferrero have also indicated that they are considering making offers for Cadbury , though they have yet to post formal bids.
Kraft’s raised bid comes as new independent directors with considerable brand building and marketing experience join its board of executives. Heineken’s chief executive Jean-Francois van Boxmeer and former chairman of retailer VF, Mackey McDonald, joined its board of directors on 1 January.
Daryl Fielding, the former Ogilvy & Mather executive and prime architect of the Dove Real Women campaign, also joins the company as its new European vice-president of marketing this month .
