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Kraft bids to swallow Cadbury

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Kraft bids to swallow Cadbury

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A transatlantic chocolate war is about to be unwrapped after Britain’s Cadbury rejected a takeover approach by the biggest US food group Kraft.

The Americans have said they will press ahead, regardless of the knock back from Cadbury, which is the world’s second biggest confectionery group. Kraft said it wants to create a “global powerhouse in snacks, confectionery and ready meals” with combined annual revenues of about 35 billion euros and predicted savings of more than 430 million euros a year. It has offered 11.6 billion euros in cash and shares. That is 31 percent more than Cadbury’s shares were selling for when they closed on Friday. On news of the bid they soared 38 percent in heavy trading indicating that the markets think Kraft will have to up it’s offer if it is to prevail. The European food and consumer goods sector generally benefited with Anglo-Dutch giant Unilever up along with Nestle, which is the world’s biggest food group.