Helen Power, M&A Correspondent
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Cadbury is expected to rebuff Kraft, its predator, almost immediately if the American food group makes a low-ball hostile bid.
Kraft, the maker of Oreo cookies and Philadelphia cheese, must make a formal bid for Cadbury by 5pm on Monday or walk away for six months.
The US company is expected to bid for Cadbury either at its initial 745p-a- share offer price, or at a small premium to the chocolate maker’s share price, which closed down 4p at 758½p yesterday.
Cadbury will hold a board meeting on Monday afternoon to consider Kraft’s offer. It is expected to quickly reject either type of bid.
The company has the support of key shareholders to say no. Legal & General, Cadbury’s biggest UK shareholder, with a 5.4 per cent stake, said in September that Kraft’s opening offer “materially undervalued” it.
The expiry of Monday’s deadline could tempt more bidders for Cadbury, hedge fund investors said.
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