Kraft Foods Makes Takeover Bid for Cadbury

Kraft Foods initiated a takeover bid for Cadbury, proposing an indicative offer of £10.2 billion, equivalent to approximately US$16.2 billion. This initial offer was met with rejection from Cadbury, which argued that the bid did not accurately reflect the company's value. Following this, Kraft Foods escalated its approach by launching a formal and hostile bid, which valued Cadbury at £9.8 billion. This move was part of Kraft's strategy to expand its portfolio in the confectionery market, as Cadbury was a well-established brand with a strong market presence. The bid was significant in the context of the global food industry, highlighting the competitive nature of mergers and acquisitions in the sector. Kraft's interest in Cadbury was driven by the latter's diverse product range and its strong brand loyalty among consumers, which Kraft aimed to leverage to enhance its market share and profitability.