Kraft may look to sell its brand Maxwell House to generate a higher offer to Cadbury, the world's second largest confectionery group, claim media reports.

According to the New York Post, the US manufacturer, which has three weeks left to table a formal offer for the UK confectioner, said it was considering a sale of the well know coffee brand to finance an increased bid.

The newspaper added that Kraft, according to sources close to the situation, were in negotiation to sell Maxwell House to Sara Lee.

The UK’s Takeover Panel announced a deadline of November 9 for Kraft to make a bid for Cadbury or to say that it does not intend to make an offer.

Companies that are targeted for takeover frequently approach the takeover panel seeking a so-called ‘put-up-or-shut-up’ action in order to minimize disruption to business and uncertainty for shareholders.

Kraft made an offer of £10.2bn (about $16.4bn) on August 28, but Cadbury rejected the bid, saying that it ‘fundamentally undervalued’ the company and that it ‘made no strategic or financial sense’ for Cadbury.

From confectionerynews.com