Kraft's bid for Cadbury reveals boss's $3m to $8m bonus

Chocolate wars began in earnest this weekend as the US food giant, Kraft, launched its formal £10bn offer document for UK confectioner Cadbury.

The document revealed that Kraft's boss, Irene Rosenfeld, could earn a bonus of between $3m (£1.8m) and $8m this year, has personal use of Kraft Foods' aircraft and a $10,000 a year allowance for financial consultancy.

Responding to the revelation of Ms Rosenfeld's bonus, a spokesman said: "If that is all Cadbury has to say, then that's not much of a defence, is it?"

Cadbury, which has already rejected the offer as derisory and has two weeks to issue its defence, declined to comment.

The offer triggers the 60-day timetable operated under Takeover Panel rules, with investors given until 5 January to accept the offer. Kraft is offering 300p a share plus 0.2589 Kraft shares for each Cadbury share, valuing the Creme Egg-maker at 713p-a-share based on its 1 December closing price. That compares with Friday's close of 795p.

Lord Mandelson, the Business Secretary, who said he could not block the bid, warned that there should be no "asset-stripping" and hoped "long term commitment, not short term profit" would rule the day.

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