Cadbury agrees £11.5bn Kraft takeover

Cadbury is poised to be taken over by US food conglomerate Kraft after its board approved a new increased bid.

The Cadbury board will advise its shareholders to accept a new offer of 840p a share - valuing the company at £11.5bn. Kraft's offer is far improved on the £9.8bn hostile bid last year, while the group is also offering a special 10p per share dividend for Cadbury shareholders. The offer consists of 500p in cash, with the rest made of Kraft shares. Kraft will borrow £7bn to finance the deal. "We believe the offer represents good value for Cadbury shareholders and are pleased with the commitment that Kraft Foods has made to our heritage, values and people throughout the world," Cadbu...