Kraft in waiting game over Cadbury

The North American food group is likely to keep the same terms as its informal offer, which values Cadbury at 10.2 billion pounds, sources familiar with the matter have said, before sweetening its bid later.

"We anticipate the bid coming on Monday to kick off the formal takeover process," said one analyst, speaking under the condition of anonymity.

Cadbury early in September rejected the cash-and-share bid, worth 745 pence per share at the time, and at 723 pence at current values. At 762 pence on Friday, markets show they are not expecting a massive extra pay-out from Kraft, led by its determined chief executive, Irene Rosenfeld.

For current values based on the latest share prices, click on.

Under British takeover rules, Kraft needs to put in a formal bid by close of business on Monday or else walk away for six months and the fact that it is waiting until the last few days shows it believes there are no rival bidders.

Even after posting weaker than expected quarterly numbers and cutting its sales forecast, Kraft reiterated this week it would not overpay for the British group best known for its Dairy Milk chocolate.

Investors had hoped that stronger quarterly results would bolster the proposal, but shares in the maker of Velveeta cheese and Oreo cookies declined on the news.

SMALL BUMP

Still, views on what Kraft will ultimately pay for Cadbury have drifted down as hopes of a rival bidder have diminished and the value of the bid is not too far removed from some estimates of a stand-alone value for the British group.