Ferrero drops out of Cadbury race
Italian confectioner Ferrero ruled itself out of the Cadbury takeover race today after last week's recommended £11.9 billion bid from US food giant Kraft.
Ferrero - famed for its Rocher chocolates and advertisements - had been weighing up its options over the Dairy Milk maker since November amid rumours of a joint approach with US rival Hershey.
But Hershey formally withdrew from the race on Friday, clearing the way for Kraft's takeover.
Kraft, which makes products ranging from Terry's Chocolate Orange to Maxwell House coffee, also gave more details on the terms of its offer today.
Although Kraft's offer for Cadbury last week included 500p cash, some investors can opt to be paid 799p in cash if other shareholders choose to accept a greater proportion of Kraft's shares in payment.
The total value of the US firm's offer - including the 10p special dividend - has edged down from 850p to 837p because of the pound's fall against the dollar since December. This lowers the conversion price of Kraft's shares, which are priced in dollars.
"The final offer's value will change as the Kraft Foods share price and the USD/GBP exchange rate change," the US company added.
Charles Stanley analyst Jeremy Batstone-Carr said UK shareholders in Cadbury were likely to dump the Kraft shares.
"UK-based investors are unlikely to want to hold Kraft stock... We believe that as many as half these holders... will be looking for alternative investment destinations here in the UK," he added.
Shareholders have until February 2 to accept Kraft's offer, which will end Cadbury's heritage as an independent business stretching back to 1824.
The combined group would have more than 40 major confectionery brands, becoming the world's number one chocolate and sweets firm and the second biggest in chewing gum with the addition of Cadbury's Trident brand.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...