U.K. ruling gives Kraft until Nov. 9 to make firm offer for Cadbury

By Lisa Kerner

Charlotte, N.C., Sept. 30 - Cadbury plc said Kraft Foods Inc. has until Nov. 9 to announce a firm offer for Cadbury.

The deadline, according to Cadbury, was imposed by the Takeover Panel Executive under rule 2.5 of the U.K. Takeover Code.

As previously reported, Kraft proposed buying Cadbury for 300p in cash and 0.2589 of a new Kraft share per Cadbury share.

The offer values each Cadbury share at 745p, a premium of 34% over Cadbury's 90-day average share price of 555p in the period up to Sept. 4.

Cadbury announced earlier in the month that it had rejected Kraft's offer.

"Cadbury has a strong position in the global confectionery market and the board is confident in Cadbury's stand-alone pure play strategy and growth prospects," Cadbury chairman Roger Carr said in a company news release.

Despite the rejection, Kraft said previously it is committed to a transaction and to maintaining a dialogue with the Uxbridge, England-based confectionery company.

Kraft, based in Northfield, Ill., is the world's second-largest food company.

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