Kraft lowers acceptance term for Cadbury deal

US food major Kraft Foods today said it required only 50 per cent support from Cadbury shareholders to take over the British confectioner.

Kraft had earlier demanded 90 per cent support for its takeover bid worth 11.9 billion pounds for Cadbury's board.

"Kraft Foods announces that it has now reduced the number of acceptances required to fulfil the acceptance condition of the recommended final offer for Cadbury plc from 90 per cent to 50 per cent," Kraft said in a statement.

The move signals Kraft's confidence in securing at least 50 per cent backing of Cadbury shareholders after the maker of Dairy Milk's board urged them to support the offer. The deadline ends on February 2 for accepting the offer.

Cadbury board has agreed to Kraft's improved offer of 840 pence per Cadbury share. As per the revised offer, the US firm would give 500 pence in cash and 0.1874 new Kraft stocks for every Cadbury share.

Kraft would offer 2,000 pence in cash and 0.7496 new shares for each Cadbury ADS (American Depository Shares).

Moreover, Cadbury shareholders would receive ten pence for every share by way of a special dividend.