Krafty move: the US company's takeover bid has been rejected

Kraft, maker of various well-known food brands from Oreo to Dairylea, is working on sweetening terms, which it argues would protect jobs at the iconic British group, create a business with $50bn in revenues and help Cadbury make pre-tax cost savings of around £375m each year. But some believe it could turn into a hostile bid as Kraft could go directly to Cadbury shareholders and has reportedly met with Citigroup (also its financial adviser in the approach) and Deutsche Bank to secure financing for such a move, according to thegrocer.co.uk.

Some reports claim Nestlé and Hershey may get involved in a second round offer. In a letter to Cadbury, Kraft chairman and CEO Irene Rosenfeld said she saw “few catalysts for sustained future value creation for Cadbury as a standalone entity” and that “Cadbury’s prospects, ability to fully realise operational efficiencies and capacity to invest are necessarily constrained given its limited scale and scope relative to larger global competitors.” But she forgot to ask for a shipment of Creme Eggs.