Kraft set to seal £11.4bn Cadbury deal

Tuesday, 2 February 2010

Cadbury is to unveil the level of support for Kraft's takeover offer

Cadbury is to unveil the level of support for Kraft's takeover offer

US giant Kraft's five-month battle for control of iconic British confectioner Cadbury is set to be sealed when it unveils the level of support for its takeover offer.

The cash-and-shares deal, recommended by the Cadbury board two weeks ago, values the UK firm at around £11.4 billion.

Shareholders have until 1pm to accept the Oreos-to-Toblerone maker's offer, which would end the independent heritage of Cadbury stretching back to 1824.

To win control, Kraft must gain support from those holding a straightforward majority of the shares - or else it is not allowed to make another bid for the firm for a year.

If its offer is accepted by investors holding 75% or more of the stock, it can delist the company's shares from the London Stock Exchange.

it is also the last day for another potential bidder to enter the fray - which would restart the 60-day takeover timetable - although this is extremely unlikely after US firm Hershey and Italian chocolatier Ferrero both ruled themselves out of the running.

Kraft hopes that its takeover will create a "global confectionery leader", making the combined group world number one in the chocolate and sugar confectionery market and "a strong number two" for chewing gum.

Cadbury was first approached by Kraft last August but accused it of trying to buy the firm "on the cheap" with its lower original offer. The board relented two weeks ago when Kraft upped its bid.

Cadbury employs around 45,000 people in 60 countries, with 5,600 staff at eight manufacturing sites in the UK and Ireland, including a facility in Somerdale, near Bristol, which is currently scheduled to close, as well as its Bournville factory in Birmingham.

Unions and Birmingham MPs have voiced concerns over the danger to British jobs from a takeover that could saddle the combined company with mammoth debts.

NiteLife: The Roost, Granny's, Bert's

Had a big night out? Click here to send your pics

Balmoral Show: Pictures and Results

Balmoral Show

In Pictures: North West 200

North West 200

Old School Pics: Alex Higgins

Old School

To launch gallery click image or select school below

Methodist College, Campbell College, Grosvenor,
Bangor Grammar, Dunlambert, St Augustine's,
St Dominic's, Royal Academy, Ballymena Academy

The Troubles: Northern Ireland's First Minister and Deputy First Minister

Gallery: Awesome images of Titanic

Gallery: Awesome images of Titanic

Teletoons by Stevie Lee

Teletoons by Stevie Lee

Follow us on Twitter

Out & About: The Garrick

Out & About: The Garrick

Columnist Comments

robert_fisk

The Belfast hotel where you check in but never leave

Wars never end. Not if you're fighting in them, even reporting them.

jane_graham

Don't let sisters stop you looking for love, Cheryl

What's wrong with wanting a man? I ask because lately I've lost count of the miserable, lonely female celebrities being told by other women that they should stay single.
readers_editor

Seeing is believing when it comes to the justice system

A Bill in the Queen’s Speech will, hopefully, speed up the process of letting some more sunlight into Northern Ireland’s rather musty justice system.

robert_mcneill

So that's why their pupils were glazed in Play School

Odd period, the 1970s. I've tended to deride them as grim, which they certainly were, but I appreciate now the music and, er, that's about it. They weren't particularly happy years in Northern Ireland.
eamon_mccann

Tragedy is opportunity for conflict resolution envoys

The Good Friday Agreement is a cure for which there is no known illness. Nowhere in its 11,000 words does it identify the problem which it purports to solve.
Belfast Telegraph Quizzes

Exams

Just Born: Readers' Baby Pictures

Just Born: Readers' Baby Pictures

To send Us Your Baby snaps just Click here

Just Wed: Readers' Wedding Pictures

Just Born: Readers' Wedding Pictures

To send Us Your Wedding snaps just Click here

 

Latest Comments

Belfast Telegraph Home Delivery