Kraft Foods have been given a November 9 deadline for an £11 billion plus hostile bid for Cadbury after the Birmingham-based confectionery giant rejected its earlier offer.
The US group is expected to raise its offer for the Dairy Milk manufacturer, whose main UK factory is at Bournville, from 745p a share, valuing the company at £10.2 billion, to 800p a share, according to recent reports.
Cadbury said today: "Cadbury PLC notes today’s announcement by the Takeover Panel Executive that it has imposed a deadline of 5pm on November 9, 2009, by which time Kraft Foods Inc must, unless the Takeover Panel Executive consents otherwise, either announce a firm intention to make an offer for Cadbury or announce that it does not intend to make an offer."
The likely new move by Kraft was hinted at by chief executive Irene Rosenfeld, who said of the hostile bid: "I would suggest it’s premature. Eventually, maybe.
"We feel very good about gum and sugar confectionery. I like their footprint. The takeover is not about broad versus focused. It’s about growth and performance."
It is thought rivals Nestle or Hershey may also come forward and table a bid for the group.
Roger Carr, chairman of Cadbury, said: "Cadbury has a strong position in the global confectionery market and the Board is confident in Cadbury’s standalone pure play strategy and growth prospects.
"We have made our position on Kraft’s proposal very clear and we welcome the Panel’s decision today in the interests of obtaining clarity and certainty for our shareholders and employees at the earliest opportunity."
A deal between Kraft and Cadbury, which is the world’s second-biggest confectionery firm behind Mars, would create a "global powerhouse," with annual sales of about $50 billion (£30.5 billion), according to Kraft.
