Kraft is set to increase its hostile bid for Cadbury later this month, as the UK confectioner prepares for a crucial trading update on 15 January.

The US food group has until 19 January to return to Cadbury shareholders with an improved offer but will wait until the Dairy Milk maker reveals its latest performance data.

Kraft’s opening bid for Cadbury, launched in November and comprising 60% stock and 40% cash, has increased in value over the past month due to a resurgence in the US group’s share price.

The bid currently values Cadbury at £10.3bn or around 740p per share. The UK confectioner’s shareholders are believed to be holding out for 800p a share.