Kraft has confirmed it is finalising the terms of a recommended offer for Cadbury after people with knowledge of the matter said it will raise its bid to about £12bn (€13.7bn).
Cadbury investors would get 840 pence a share, including 500 pence in cash and the rest in stock, under the new offer, said the people, who declined to be identified because the talks are private.
Cadbury would also pay its holders an additional 10-pence dividend, the people said. The offer is about 9pc higher than Kraft’s previous bid of 769 pence. Cadbury rose 25.5 pence, or 3.2pc, to 833 pence as of 8:04am in London.
Kraft Chief Executive Officer Irene Rosenfeld increased the original bid after Cadbury rejected it as “derisory” and Hershey prepared to mount a rival offer.
A purchase by Kraft would create a company with about $50bn in annual sales, adding Cadbury’s Trident gum and Creme Eggs to Kraft’s Oreo cookies, Toblerone chocolate and Tang powdered drinks.
The companies may announce a deal as early as today, the people said.
Trevor Datson, a spokesman for Cadbury, and Michael Mitchell, a Kraft spokesman, declined to comment. The BBC reported the talks between the companies yesterday.