Lumbering Kraft chases Cadbury

US food giant Kraft made a formal bid for Cadbury two monts after its unofficial approach was turned down. But Cadbury's rejected the offer as 'derisory,' and Kraft's room for manoeuvre is limited.

US food giant Kraft Foods has made a formal bid for Cadbury two months after an unofficial approach was rejected. The terms of its £9.8bn cash-and-share offer are the same as in September's bid, although the decline in Kraft's share price since then, following lacklustre results, means the overall value of the deal has fallen from £10.2bn. Cadbury's chairman Roger Carr immediately rejected the new offer as "derisory".

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