Kraft lowers acceptance level for Cadbury bid

US group Kraft Foods yesterday said it required only 50 per cent support from Cadbury shareholders to ratify its takeover bid for the British confectioner after slashing the threshold.

Kraft Foods had originally demanded 90 per cent backing for an offer worth £11.5 billion agreed last week with the Cadbury board.

The change indicates Kraft's confidence in securing at least 50 per cent support of Cadbury shareholders after the British company's board urged them to back the bid. The deadline for acceptance is February 2.

"Kraft Foods Inc. 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," the US company said in a statement to the London Stock Exchange.

Ending a bitter hostile takeover battle with Kraft, the Cadbury board agreed to an improved offer worth 840 pence per Cadbury share.

Under the deal, Cadbury shareholders will also receive 10 pence per share via a special dividend, lifting Kraft's offer to £11.9 billion.