Kraft's weak third-quarter results could hamper its bid for Cadbury, warnanalysts.

Shares in Kraft fell 3% to $26.67 after its trading update this week, due largely to disappointing organic sales growth of 0.5%.

The tumbling value of Kraft shares has reduced the value of the conglomerate's speculative Cadbury bid from 745p to 720p. With the 9 November "put up or shut up" deadline for an offer looming, Kraft had not yet made a formal bid as The Grocer went to press.

However, according to analysts at Panmure Gordon, the company has succeeded in raising $9bn of bridge finance that will let it raise the cash portion of its offer from £3 per share to £4.

Investec brokers added that they did not expect the Kraft offer to exceed a share and cash total of £8 per Cadbury share.

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