Kraft poised to make knockout bid for Cadbury
Kraft may increase its takeover offer for Cadbury by more than the market expects, to between 840p and 850p per share, I have learned.
At that level, Cadbury's board may recommend the bid by the US food giant.
This would bring to an end the intense animosity between the companies that has been manifested since Kraft announced its desire to own Cadbury last autumn.
It would also end any doubt at all that Cadbury will lose its independence.
There would still be a theoretical possibility that the US confectioner Hershey would come in with a higher offer.
But if Cadbury's board recommends Kraft's bid, it means that the company will be taken over.
Negotiations between Cadbury's bankers and Kraft's bankers are taking place overnight.
If a deal is agreed between Kraft and Cadbury, which seems highly likely, it will probably be announced at 7 tomorrow morning.
Under British takeover rules, an announcement by Kraft of its intentions has to be made by close of business tomorrow.
At 850p, Cadbury would be valued at £11.7bn.
Please see my earlier note for more on the implications of a takeover of Cadbury.