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.