Kraft spurned by Cadbury but still hoping for chocately good ending

September 8, 2009

(ChattahBox) –If all the ifs and buts were candy and nuts, Kraft Foods will be rolling in chocolate soon.  Because despite the initial rejection, Kraft Foods strongly hinted today it would pursue a possible hostile takeover of the British chocolate maker Cadbury ( who also owns Trident gum brand) even after they rejected an initial $16.7 billion offer, saying it was too low.   A combination of the food giants two would create a “global powerhouse in snacks, confectionery and quick meals” with annual sales of more than $50 billion, Kraft said.  Kraft shares are down this morning $1.23, or 4.4%, at $26.87.  Shares of Cadbury soared 38 percent in London trading today, indicating that investors expect Kraft to raise its offer or think another company like Pennsylvania based Hershey may make a competing proposal. Hershey already distributes Cadbury products in the U.S. under a longtime agreement.

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