dan9999
01-19-2010, 12:46 PM
Kraft reaches $19 billion deal for Cadbury
January 19, 2010: 5:44 AM ET
LONDON (CNNMoney.com) -- Kraft reached a $19 billion deal Tuesday to buy Cadbury, finally succeeding in its takeover of the 200-year-old British candy maker after sweetening its offer.
Cadbury's board said it was unanimously recommending the bid to shareholders.
The cash-and-stock offer values each Cadbury share at 840 pence, or about $13.72. Shareholders will also be entitled to a 10 pence dividend per share.
Under the terms of the deal, for each share they own, Cadbury shareholders will receive 500 pence in cash and 0.1874 new Kraft shares.
Cadbury shares rose nearly 4% in London.
The deal, which creates a global food behemoth, comes after months of back and forth between the two companies.
Kraft initially launched a $16 billion takeover bid for Cadbury in September. But the company was repeatedly rebuffed by Cadbury.
Kraft, which makes everything from Oreo cookies to American cheese slices, had met resistance from some of its shareholders over its pursuit of Cadbury.
Earlier this month, billionaire investor Warren Buffett, whose Berkshire Hathaway is Kraft's biggest shareholder, voted against Kraft's proposal to issue new shares for its takeover bid.
January 19, 2010: 5:44 AM ET
LONDON (CNNMoney.com) -- Kraft reached a $19 billion deal Tuesday to buy Cadbury, finally succeeding in its takeover of the 200-year-old British candy maker after sweetening its offer.
Cadbury's board said it was unanimously recommending the bid to shareholders.
The cash-and-stock offer values each Cadbury share at 840 pence, or about $13.72. Shareholders will also be entitled to a 10 pence dividend per share.
Under the terms of the deal, for each share they own, Cadbury shareholders will receive 500 pence in cash and 0.1874 new Kraft shares.
Cadbury shares rose nearly 4% in London.
The deal, which creates a global food behemoth, comes after months of back and forth between the two companies.
Kraft initially launched a $16 billion takeover bid for Cadbury in September. But the company was repeatedly rebuffed by Cadbury.
Kraft, which makes everything from Oreo cookies to American cheese slices, had met resistance from some of its shareholders over its pursuit of Cadbury.
Earlier this month, billionaire investor Warren Buffett, whose Berkshire Hathaway is Kraft's biggest shareholder, voted against Kraft's proposal to issue new shares for its takeover bid.