Kraft Foods has this morning (5 January) revealed plans to offer more cash to the shareholders of Cadbury. This happends after Kraft agreed to sell its North American frozen pizza business to Nestle. In this new offer Cadbury investors will have the chance to receive a "partial cash alternative".  Meanwhile, in the wake of the pizza sale, Nestle, which had been also shown as a possible bidder for Cadbury, issued a statement to announce that "does not intend to make, or participate in, a formal offer". Cadbury has dismissed Kraft Foods’ revised takeover offer as “unchanged and derisory”. A Cadbury spokesman said: “Kraft has once again missed the point. Despite this tinkering, the Kraft offer remains unchanged and derisory with less than half of the consideration in cash.”

Kraft plans to release more details of the "partial cash alternative" by 19 January. However, the company said it will apply "an amount equivalent to the net proceeds from the pizza sale", estimated to be 60p per Cadbury Share or 240p per Cadbury ADS, to fund the new cash part to its offer.

On the other hand according to a report in Il Sole 24, Ferrero recently held discussions with Kohlberg Kravis Roberts and Blackstone Group over the possibility of launching a counter offer in conjunction with the private equity groups. A spokesperson for Ferrero confirmed yesterday that the group is still "considering its options" with regard to Cadbury and monitoring the progress of Kraft Foods' hostile takeover bid "with interest"....
 
Compiled from various sources including Financial Times, just-food.com and others.