Report: Kraft has deal for Cadbury

Citing people briefed on the matter The New York Times reported Monday Kraft will acquire Cadbury in a cash and stock deal that will bring it more than $50 billion in revenue globally.

The Times reported its source said the agreement could be announced Tuesday -- the last day on which Kraft could increase its offer under British law. The talks were still being held late Monday, the Times said.

Cadbury has twice rejected Kraft's bid of $17.1 billion, even as it made a second offer shifting the bid to include more cash to appease Cadbury shareholders who did not particularly want to end up with Kraft shares, The Times of London Online reported Monday.

Some market analysts expect Kraft in a new bid will lock in the minimum ratio for a stock swap with Cadbury. That would address concern among Kraft shareholders that the deal undervalues Kraft shares, The Times said.

But MarketWatch reported Monday that David Cummings, head of Standard Life Investments, one of Cadbury's top 20 shareholders, said he would reject any bid short of $20 billion, characterizing Kraft as a "low growth" amalgamation of businesses.

In addition, the Wall Street Journal said Friday Hershey was expected to offer about $18 billion for Cadbury.

Copyright 2010 by United Press International.