Cadbury investors shun Kraft bid

CADBURY shareholders have cold-shouldered the hostile £10.5 billion takeover bid from Kraft Foods at the first closing date, with only 1.52 per cent of acceptances, the American group has revealed.

The low take-up by 1pm on Tuesday had been expected, as the City believes Kraft will have to increase its cash-and-shares offer – currently worth 765p per share – to win the day.

Kraft said its offer would remain open until 2 February, and it is thought most Cadbury investors will probably wait for the 19 January deadline for Kraft to raise its bid before deciding whether to accept.