Chocolate Wars Hitting Up - Kraft Raising Bid

Published on Sunday, 03 January 2010 22:59 Written by Christopher Lynn

London, Jan 3^rd (TradersHuddle.com) – Shares of Kraft Foods Inc (NYSE:KFT) will be on watch tomorrow morning, as they will certainly feel pressure from traders as the company prepares to raise its proposal to takeover U.K. chocolate maker Cadbury PLC.

The London Times reported this Sunday that Kraft’s Chairman and Chief Executive Officer Irene Rosenfeld is preparing to raise the bid to try to persuade Cadbury investors, which considered Kraft’s bid inadequate.

So far the market seems to agree with Cadbury stockholders, as the stock closed last Friday at 8% higher than Kraft’s current offer.

Hershey Co (NYSE:HSY) is being rumored that will be entering the chocolate wars, as it has been preparing a rival offer for Cadbury, but the Times of London reported that it is expected to wait to see the details of any improved offer from Kraft before bidding.