A storied UK confectioner could be getting new owners soon if shareholders agree to a deal recommended by its board of directors today.
Cadbury Plc’s (NYSE:CBY) board of directors recommended Kraft Foods Inc’s (NYSE:KFT) bid to buy the company, four months after the initial offer.
Shareholders have until Feb 2 to accept the bid.
Cadbury’s Chairman said the final offer represented a “good value” for the company, adding he was pleased with Kraft’s commitment to the firm’s “heritage, values and people.”
Kraft CEO Irene Rosenfeld said the offer would provide shareholders with “immediate value certainty and upside potential in the combined company.”
Cadbury shareholders would receive 500 pence in cash for each of their shares and would also receive 0.1874 shares of the new Kraft Foods shares. Owners of Cadbury American Depositary Receipts would receive 2,000 pence in cash and 0.7496 new Kraft Foods shares.
Kraft Foods shares fell 1.25 percent in afternoon trading in New York while Cadbury shares closed up 3.59 percent in London trading.