UK News - Cadbury girds for Kraft takeover bid

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Cadbury girds for Kraft takeover bid

LONDON (UPI) -- British confectioner Cadbury is preparing for a $16 billion hostile takeover attempt by U.S. food conglomerate Kraft, analysts say.

With a British regulatory deadline looming for Kraft, analysts foresee the American company rejecting a "friendly negotiations" avenue and instead opting to launch a hostile bid after Cadbury turned down a buyout bid in September, The Sunday Times of London reported.

Without naming sources, the newspaper said Kraft CEO Irene Rosenfeld is putting the finishing touches on a takeover bid that must be submitted by a Nov. 9 deadline imposed by Britain's Panel on Takeovers and Mergers.

Analysts say it's unlikely that Kraft will launch its Cadbury bid before it releases its third-quarter earnings this week.

The Financial Times reported that if Kraft made the hostile move, it would likely last for months. It reported that Bank of America/Merrill Lynch has issued research contending there was a 75 percent chance that Kraft would come forward with a hostile bid.

Copyright 2009 by United Press International

This news arrived on: 11/01/2009

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