Kraft to sell Maxwell House to finance larger Cadbury bid?

Posted by Isobel Drake on 19th October 2009

Reports are circulating that Kraft could look to sell their global coffee brand Maxwell House in order to finance a higher offer to Cadbury.

The US-based manufacturer has three weeks left to table a formal offer for the UK confectioner and the New York Post said they were considering a sale of Maxwell House to fund an enlarged bid.

Citing sources close to the situation, the paper said that Kraft is in talks to sell the coffee brand to Sara Lee. The sources said that Kraft was close to organising the funds to support their original non-binding offer, but more was likely to be needed given Cadbury shares were now trading at a premium to the original proposal.

Kraft told the New York Post that they would not comment on speculation, but added they were comfortable in their ability to fund an official offer to Cadbury.

Sara Lee has said they want to focus on their food and beverage division and has recently sold their European household care division to Unilever, leaving them with the capability to make acquisitions if a suitable opportunity arises.