Kraft lender Barclays wins bigger role on Cadbury

 @ibtimes on December 17 2009 2:00 PM

Barclays Capital, one of the banks providing $9.2 billion of loans to help fund Kraft Foods Inc's hostile bid for Britain's Cadbury Plc , has won a bigger role as one of Kraft's financial advisers.

The investment banking unit of Barclays Plc is aiming to become a top global full-service investment bank, broadening from a traditional debt focus after it took over Lehman Brothers' U.S. operations.

A credit as financial adviser on Kraft-Cadbury would yield valuable kudos in mergers and acquisitions (M&A) league tables, but it was not clear how much strategic advice Kraft will seek from a fifth advisory bank several months into a takeover battle.

Barclays joins lead financial adviser Lazard , Citigroup , Centerview and Deutsche Bank .

Barclays Capital is acting as financial advisor to Kraft Foods in connection with a potential takeover offer for Cadbury Plc, credit analysts at BarCap said in a note to clients, adding they had suspended coverage of Cadbury because of the appointment.

This week Cadbury attempted to secure the loyalty of shareholders with the prospect of rival bids and promised bigger dividends and stronger growth as it reiterated its opposition to the 10 billion pound ($16.4 billion) takeover.

On November 9 Kraft said it had secured a $9.2 billion senior unsecured term loan, arranged by Citi, Deutsche, and HSBC. The other banks participating in the credit facility were BarCap, BBVA, BNP Paribas, Credit Suisse, RBS and Societe Generale, Kraft said.

Barclays and Kraft had no immediate comment.

(Reporting by Quentin Webb; Additional reporting by Jessica Hall in Philadelphia and Bradley Dorfman in Chicago; Editing by David Holmes)

($1=.6115 Pound)

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