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.