The shares of Cadbury today jumped nearly four per cent to touch its year-high on the London Stock Exchange after the confectionery major accepted the takeover offer by American food company Kraft Foods.
The Cadbury scrip jumped to a 52-week high of 838 pence in the morning trade over its previous day's close of 805.5
pence, after Kraft announced that the Cadbury board unanimously recommended the increased offer of about 11.9
billion pounds to its shareholders.
The 11.9-billion pound deal would offer Cadbury stakeholders 840 pence a share. The Cadbury was trading at
834.5 pence, up 3.34 per cent in the afternoon trade on the LSE.
The proposed combination, with dominant presence in markets including India, would have over 40 confectionery
brands, with each each of them having annual sale of over $100 million.
The US major's increased bid came after the initial offer -- worth about 10.5 billion pounds -- was rejected by Cadbury which had termed it as "derisory.