Kraft makes Cadbury takeover bid

US food company Kraft has launched £9.8bn ($16.43bn) hostile bid for UK confectioner Cadbury.

Kraft announced it will offer 300 pence in cash and 0.2589 new Kraft shares for each Cadbury share, the same terms as it proposed in September.
Because Kraft shares have dropped in value since then, the bid is now worth less than the original £10bn approach.
Cadbury had rejected the original Kraft offer, saying it "fundamentally undervalued" the company.
Kraft is now taking its offer directly to its shareholders.
Under Takeover Panel rules, Kraft had until 1700 GMT on Monday to make a new offer or walk away for six months.
'Long-term value'
"We believe that our proposal offers the best immediate and long-term value for Cadbury's shareholders and for the company itself compared with any other option currently available, including Cadbury remaining independent," said Irene Rosenfeld, Kraft chairman.
Shares in Cadbury, which had been over 1% higher, fell by 0.5% to 754p.
Many investors had expected Kraft to increase its offer to tempt the board to back the offer.
Weekend reports had said that some Cadbury shareholders thought 820p a share would be a "starting point" for discussions with Kraft.
Cadbury chairman Roger Carr had previously said in a letter to Kraft chief executive Irene Rosenfeld that "Cadbury would be absorbed into Kraft's low growth, conglomerate business model" and that made the offer an "unappealing prospect".
Shares in Cadbury have risen about 30% since late August.
As well as Dairy Milk, Cadbury also owns the Green & Black's chocolate brand, Halls lozenges, Trident and Dentyne gum brands and liquorice allsorts maker Bassett's.
It spun off its drinks division as a separate business last year.
Kraft's brands include Kenco and Maxwell House coffee, Oreo biscuits, Jacobs, Terry's Chocolate Orange and Toblerone, as well as cheese products such as Philadelphia and Dairylea.