Kraft still has a long way to go in Cadbury battle

Posted by Daniel Palmer on 7th January 2010

Kraft Foods is a long way away from gaining control of UK-based confectioner Cadbury, with a release from the American manufacturer overnight showing that a mere 1.52% of Cadbury shareholders had accepted their November 9 offer.

Kraft intends to keep the offer open until February 2 but is likely to have to materially raise the offer by a January 19 deadline if they want to wrest control. While many Cadbury shareholders will have chosen to ‘sit on the fence’ until this January 19 date, it is very unlikely that there would be a high enough take up for Kraft to carry out an acquisition without the offer being raised.

With Nestlé ruling itself out of the race, the potential for a bidding war has fallen, although Hershey and Ferrero remain in the picture. Any counterbidders have until January 23 to make a formal offfer.