The oldest British chocolate manufacturer, Cadbury, has accepted a takeover offer from American food giant Kraft Foods, valued at £11.5 billion ($19 billion), the BBC reported on Tuesday.
The BBC stated that the board of directors of the British confectionery company accepted Kraft’s improved offer after "all-night tense negotiations." In the new offer, the American company proposed 840 pence per Cadbury share, compared to the previously offered 761 pence. Shareholders of the British company will also receive a dividend of 10 pence per share. The offer includes a payment of 500 pence per share in cash, while the remainder will be paid in Kraft shares. The American company will borrow £7 billion ($11.5 billion) to finance the transaction. Kraft confirmed on Tuesday that the two companies are currently finalizing the terms of the takeover. This agreement followed a bitter battle in which Cadbury repeatedly rejected Kraft’s offer, calling it undervaluing. Cadbury employs 5,600 people in the UK and 40,000 worldwide. (H)
