Kraft Foods Inc. took its $15.3 billion takeover offer for Cadbury PLC to shareholders on Friday, and the terms of the deal are unchanged from its earlier offer rejected earlier by Cadbury, reports the Chicago Tribune.
Even though the offer hasn’t been sweetened yet, Kraft starts the clock on a series of regulatory deadlines and puts the offer directly into the hands of shareholders. Kraft has 46 days (under British law) to up its bid if rivals emerge. In fact, even if competitive bids don’t surface, analysts believe Kraft will increase its offer to mollify the shareholders sometime within this timeframe.
Cadbury has two weeks to craft a formal response to shareholders about the offer, which it has said undervalues the company. Meanwhile, Kraft said it is the best partner for Cadbury.
“We remain confident that the unique combination of Kraft Foods and Cadbury would create a significant growth opportunity for both businesses,” said Kraft CEO and Chairman Irene Rosenfeld in a statement.