Kraft is expected to launch its £10bn-plus hostile bid for Cadbury today ahead of the deadline imposed by the UK’s Takeover Panel.
If the US food giant does not launch a formal approach by 5pm today, it will be forced to wait for at least six months before making another attempt at a takeover.
The panel issued its ‘put up or shut up’ order last month in the wake of an indicative approach from Kraft that valued Cadbury at 745p a share – around £10.2bn.
But the confectioner’s stock has fallen since then, with shares in Cadbury last week closing at 720p – valuing the Dairy Milk maker at £9.8bn. It was previously thought a bid of 800p per share would be required to secure a sale.
The Daily Telegraph reports that 10 banks have been lined up to provide funding for the bid, including RBS, Barclays Capital and HSBC.
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Cadbury braced for new Kraft bid as takeover deadline looms (2 November 2009)
Cadbury’s results set to push up Kraft bid (24 October 2009)
Cadbury piles pressure on Kraft with strong third quarter (21 October 2009)