Over the last three months or so I have commented on here about the future of Cadbury’s following a hostile approach from Kraft. Back at the end of November I blogged that my expectation was for Cadbury to hold off this takeover and for the share price to settle back to or below £7.00 with Kraft and others feeling the company was overvalued. This morning it would appear that Kraft may well be about to win the day with an offer close to £11.5 Billion, that’s over £8 a share!, being sufficient to satisfy both the management and senior shareholders in Cadbury’s.

There is still just a chance that either Hershey from the USA throw in a counter offer or that a majority of Cadbury shareholders stand their ground whatever the Board recommendation is, although by far the most likely outcome now is Kraft ownership being agreed in principle during the next few hours.

Written by: Colin from KSV.