Hostile bid on Kraft’s radar
KRAFT has opened talks with its bankers to arrange the financing necessary for its £10.2bn bid for Cadbury, in a sign that the US group could go hostile.
It is understood that the group is talking to its advisors, Deutsche Bank and Citigroup, about a loan facility of around £5bn, which would be repaid with the proceeds of an investment-grade bond offering.
It is thought that the food producer is in a hurry to get the financing in place, which it would need to do before going hostile, to reduce the threat of a counter-offer.
But Kraft last night played down suggestions that it was discussing the financing, or that it would be prepared to raise its offer for Cadbury.
The chocolate company rejected Kraft’s bid earlier this week, but its shares have climbed nearly 40 per cent amid talk of a bidding war between Kraft and US rival Hershey, while Swiss group Nestlé has also been mentioned as a contender.
Some analysts have said Hershey and Nestlé could make a joint offer for Cadbury, then split the business to get around any anti-trust concerns.
Kraft’s chief executive Irene Rosenfeld has said the company “will continue to be disciplined” in its attempt to acquire Cadbury.