Kraft lowers acceptance level for Cadbury bid

LONDON: US group Kraft Foods on Wednesday said it required only 50 percent support from Cadbury shareholders to ratify its takeover bid for the British confectioner after slashing the threshold.

Kraft Foods had originally demanded 90 percent backing for an offer agreed last week with the Cadbury board worth 11.5 billion pounds (13.1 billion euros, $18.9 billion).

The change indicates Kraft's confidence in securing at least 50 percent support of Cadbury shareholders after the British company's board urged them to back the bid. The deadline for acceptances 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 percent to 50 percent," 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 pounds.