The offer is considerably less than most Cadbury shareholders had wanted, and mirrors the terms first offered to the company in late August. Since then, Cadbury’s share price has jumped more than 30%, while Kraft’s stock has fallen roughly 5%.
Cadbury shares turned lower after the news, with analysts believing that the ensuing bidding battle could be drawn out for the next few months, delaying any potential sterling-positive M&A flows.
Kraft now has 28 days to convince Cadbury shareholders of the deal’s value. Shareholders will then have an additional 60 days to make up their minds.
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