Kraft given five weeks to make firm offer for Cadbury

Posted by Daniel Palmer on 1st October 2009

The UK Takeovers Panel has ruled that food manufacturer Kraft must make a binding proposal to Cadbury by November 9 or signal their intent not to bid.

The decision was made after Cadbury representatives went to the Panel last week to request a definitive timeline in the wake of a non-binding A$19.6 billion takeover offer. If Kraft does not make a formal proposal then they will be unable to bid for the confectioner for a period of six months.

Both parties have accepted the decision.

Cadbury responded to the news by reiterating their steadfast opposition to the approach.

“Cadbury has a strong position in the global confectionery market and the Board is confident in Cadbury’s standalone pure play strategy and growth prospects,” Roger Carr, Chairman of Cadbury, said. “We have made our position on Kraft’s proposal very clear and we welcome the Panel’s decision today in the interests of obtaining clarity and certainty for our shareholders and employees at the earliest opportunity.”