Kraft goes to Cadbury shareholders with takeover bid

LONDON British confectioner Cadbury announced Monday that it would formally respond to another hostile bid made by Kraft on Dec. 14.

Cadbury said Monday that it cannot comment further on the matter because of U.S. securities laws. On Friday, Kraft Foods made its $16.5 billion hostile takeover offer for Cadbury directly to its shareholders.

Kraft launched its hostile bid of $16.3 billion for Cadbury in early November, but Cadbury dismissed Kraft's initial offer, citing that it "does not come remotely close to reflecting the true value of our company."

Meanwhile, Hershey, another contender, has been quoted as saying it was exercising options to bid on Cadbury jointly with Italian chocolate maker Ferrero. Bloomberg reported that Hershey is currently in talks with Nestle to launch a bid for Cadbury.