Hostile Bid for Cadbury on the way by Kraft

Cadbury is likely to receive a hostile bid from Kraft Foods, pricing the British confectionery business at about 11 billion pounds ($17.4 billion pounds).

A recent report by a well-known newspaper has specified that, this week, Britain's takeover panel is readying a deadline for Kraft to put a firm offer on the table or walk away for at least six months. 

The report adds that, as of now, Kraft is applying the final touches to a financing package, which will permit it to propose about half the consideration in cash, with the rest in Kraft stock. 

Kraft may bid 800 pence a share, which could increase to 850 pence as the bid battle reaches its climax over the 60-day limit set by the panel for takeovers.

Earlier this month, a bid of $16.7 billion Cadbury was made by Kraft; however, it was rejected by the U.K. confectionary company for being too low. However, in one of the interviews, Cadbury CEO Todd Stitzer said that a tie-up with Kraft could make "some strategic sense."