Report: Kraft is sweet on Cadbury

LONDON Kraft Foods is pursuing a takeover of Cadbury after the confectionary giant rejected a $16.7 billion bid, according to reports.

Kraft's chief executive, Irene Rosenfeld, told reporters that Cadbury has "limited opportunity" as a standalone business. With Kraft, she asserted, the brand would expand, making Kraft's snack and quick meal categories skyrocket, one-upping such rivals as Nestle.

Under the proposal, Cadbury shareholders would get ?3, or $4.92, in cash and 0.2589 in Kraft Foods shares for each Cadbury share. Kraft said the offer valued the company at ?7.45, or $12.22, a share, a premium of 31% over Cadbury’s closing price of ?5.68 on Friday. In London, shares rose to ?7.83 on Monday.