The rumour mill continues to churn over Kraft Foods’ hostile bid for Cadbury, with Kraft reportedly set to post its offer documents for the confectionery giant ahead of the 7 December deadline.

The US manufacturer will argue in the documents that its 717p offer for Cadbury has a potential value of 800p.

It will tell Cadbury shareholders that the bid will be worth 12% more when its shares return to their historic five-year average, according to Bloomberg.

Cadbury shareholders are understood to be holding out for an offer worth at least 800p per share.

Kraft launched its formal offer for Cadbury early last month. Nestlé, Hershey and Ferrero have also been linked with a possible bid for the confectioner.

Read more
Hershey lines up funding for imminent Cadbury bid (30 November 2009)
Cadbury shares hit all-time high as bidding war looms (24 November 2009)