Kraft tipped to make hostile Cadbury bid this week
As the deadline for a takeover offer edges ever closer, expectations of a hostile bid for Cadbury from US manufacturer Kraft are growing stronger.
UK authorities last month announced a November 9 deadline for Kraft to make a formal bid for the British confectioner and Kraft has avoided the topic ever since. However, the maker of Vegemite is rumoured to be planning to launch a hostile bid late this week – just days after they report their quarterly results.
If they were to not table a proposal by Monday evening (November 9) then they will be unable to make an offer for Cadbury for at least six months.
Kraft made an unbinding offer to Cadbury’s board in September, which was unanimously rejected, and comments from Cadbury heavyweights suggest that a friendly deal is unlikely to be achieved without a significant premium to the initial proposal.
As such, analysts are forecasting a hostile bid before week’s end, which could see the saga roll on for months.