Kraft’s waiting game continues
There’s a new deadline in Kraft’s hostile bid for European chocolate maker Cadbury: January 6. That’s the date European regulators have extended their review of the bid until, meaning the hostile battle that started in September is all but sure to spill into the new year.
Kraft has offered concessions to ease concerns that the deal might be anticompetitive, but doesn’t plan to make major divestitures.
Still, there is some question whether approval by the authorities will make much of a difference, unless Kraft raises its bid.
Cadbury shares are still trading above Kraft’s offer and a source close to Cadbury has called the bid “derisory.” The U.S. company has also received warnings from Britain’s government about trying to pull off the deal on the cheap.
Cadbury has said it will respond to Kraft’s offer on Monday, Dec. 14. Until then, investors will have to take their cue from Kraft and wait.