The Cadbury board has rejected a formal bid from Kraft, launched just four hours ahead of the ‘put up or shut up’ deadline set by the Takeover Panel. At 13:00 GMT today, Kraft put in a £9.8bn offer – the same as its original expression of interest in September.

Chairman Roger Carr again branded Kraft a “low-growth conglomerate” and said Cadbury would perform more strongly as an independent business.

"The repetition of a proposal which is now of less value and lower than the current Cadbury share price does not make it any more attractive,” he said.

“As a result, the board has emphatically rejected this derisory offer and has strengthened its resolve to ensure the true value of Cadbury is fully understood by all. I am confident that Cadbury will deliver significant value – which should accrue wholly to our shareholders."

Kraft has offered to Cadbury shareholders 300 pence and 0.2589 new shares in Kraft for every Cadbury share, or 1,200 pence cash and 2.0356 new Kraft shares for each Cadbury ADS.

This offer was originally proposed by Kraft in September, only to be roundly rejected by Cadbury management as “materially undervaluing” the company and its future prospects.

In its statement today (9 November), the US group insisted that its current trading and prospects are “strong” and suggested that, through the share component, Cadbury shareholders would reep the benefits of the combination, including synergies.

Cadbury shares increased 1.39% immediately following the announcement, climbing to 769.5 pence at 1.35pm (GMT).