Clock running out on Kraft's Cadbury bid

Kraft is tomorrow likely to table a new takeover bid for Cadbury as the U.K. Takeover Panel has ordered the American food giant to make a firm offer for Cadbury by Monday or walk away.

Earlier on September 7 Cadbury declined Kraft's informal bid of $16.7 billion in stock & cash. 

Market analysts believe that Kraft will have to lift its bid, particularly the cash part of the offer. Kraft’s earlier offer was nearly 60 per cent stock and 40 per cent cash.

Cadbury last month reported an increase of 7 per cent in sales.

Kraft’s cash account grew from $1.7 billion on June 30 to $3 billion by the end of September.

As per estimates of some analysts, Kraft’s new offer might range between 780p and 850p. 

The potential deal between the two companies could create a combined company with annual sales of about $50 billion. 

In the recent London trading, shares in Cadbury closed at 758p-a-share.