Kraft Foods Inc on Tuesday said it was raising the cash portion of its hostile 10 billion pound ($16 billion) takeover offer for Britain's Cadbury Plc by 60 pence per share, funded by a deal to sell its North American pizza unit to Swiss food giant Nestle.
Separately, Nestle said it had no intention to bid for Cadbury, ending speculation about one potential suitor for the British confectioner.
Kraft said it would use the full net proceeds of the $3.7 billion pizza business sale to fund a partial cash alternative to Cadbury shareholders.
It said it will give detailed terms of the alternative by January 19, the last day Kraft is allowed to amend its offer under a UK Takeover Panel ruling.
(Reporting by Michele Gershberg; Editing by Hans Peters)