Qualified advisers answering your
Financial Questions
call 0800 092 1245

Cadbury rejects £9.8 billion offer from Kraft Foods

UK giant Cadbury has today rejected a £9.8 billion takeover offer from US conglomerate Kraft Foods which values each Cadbury share at around £7.20 a share. While the terms are the same as the indicative offer just a few weeks ago the fall in the Kraft Foods share price has reduced the value from £7.45 a share to £7.20 share. So what next for Cadbury?

When you bear in mind the Cadbury share price is well over £7.50 it is easy to assume that this offer, at the current level, is highly unlikely to succeed. However, it does open the door for talks between Cadbury and Kraft Foods about an agreed takeover price although at this moment in time with some institutional investors looking for up to £8.50 a share there would appear to be little room for manoeuvre.

Now that the takeover process has begun in earnest there will be opportunities for Kraft Foods to increase its original offer and indeed the process will drag on for many weeks to come. Just as we thought the door was closing on a takeover for Cadbury it would appear that the story has a lot further to run and much more volatility can be expected in the share price.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details