British Confection Giant Cadbury Is Taken Over By Kraft Foods
Kraft Foods (KFT.N) sealed a friendly deal to buy British candy maker Cadbury CBRY.L for about $19.6 billion (11.9 billion pounds) after frantic last-minute talks broke an impasse over price.
Kraft Chief Executive Officer Irene Rosenfeld injected more cash into her bid and dropped the number of new shares in the offer to win over Cadbury Chairman Roger Carr and mollify billionaire investor Warren Buffett, the U.S. food company's top shareholder.
The deal would create the world's biggest confectioner, and analysts see little likelihood of a counterbid.
After several weeks of negotiations, Cadbury approved the Kraft Foods takeover of the company. The final offer was worth $18.9 billion, an improved bid from the previous $17.1 billion proposal.
The Cadbury ( CBY - news - people ) board unanimously approved the bid, which offered 500 pence cash and 0.1874 new Kraft shares for each Cadbury share.
Getting sweet tooths to give in to temptation has never been too difficult for Cadbury, the world's second largest confectioner. However, resistance, as it's now finding, is hard to maintain. Ending months of hostility, the firm announced on Tuesday, Jan. 19, it had approved a revised takeover bid from U.S. food giant Kraft. Linking Cadbury's Dairy Milk chocolate to Kraft's Philadelphia cream cheese in a $19.5 billion deal, Cadbury chairman Roger Carr said cheerfully in a statement, amounted to "good value for Cadbury shareholders."