Kraft given Cadbury bid deadline

Cadbury produces some of the UK's best-known chocolate bars

Kraft Foods has been told by the UK's Takeover Panel it must decide whether or not to make a formal offer for Cadbury by 1700 GMT on 9 November.

If it does not make an offer, then Kraft will be blocked from making a bid for Cadbury for six months.

Earlier this month, Cadbury rejected a takeover approach in cash and shares from Kraft, which at the time valued the UK company at £10.2bn ($16.3bn).

Cadbury said that the Kraft offer "fundamentally undervalued" the firm.

Kraft's original approach was worth 745p per Cadbury share. However, Cadbury's shares have since risen to about 800p, prompting speculation that Kraft will come back with a higher offer.

Standalone strategy

After the Takeover Panel issued its so-called "put up or shut up" deadline, Cadbury, which is based in Bournville, Birmingham, reiterated its opposition to the Kraft approach.

"Cadbury has a strong position in the global confectionery market and the board is confident in Cadbury's standalone pure play strategy and growth prospects," said Cadbury chairman Roger Carr.

"We have made our position on Kraft's proposal very clear and we welcome the panel's decision today in the interests of obtaining clarity and certainty for our shareholders and employees at the earliest opportunity."

As well as Dairy Milk, Cadbury also owns the Green & Black's chocolate brand, Halls lozenges, Trident and Dentyne gum brands and liquorice allsorts maker Bassett's. It spun off its drinks division as a separate business last year.

Kraft's brands include Kenco and Maxwell House coffee, Oreo biscuits, Jacobs, Terry's Chocolate Orange and Toblerone, as well as cheese products such as Philadelphia and Dairylea.