Cadbury, Kraft Call for Update as Deadline Looms

Cadbury’s takeover panel and Kraft have requested an extension for the preparation of Cadbury’s 2009 trading results and its updated defence strategy as the £10.2bn takeover bid launched by Kraft continues.

It is thought Cadbury’s year-end figures for 2009 could be higher than initially thought, standing it in a better position to fight Kraft’s tenacious takeover bid.

Kraft has not denied Cadbury extra time to prepare its documents – the deadline asked for is now 15 January, instead of the planned 12 January ordered last year.

The move will allow Kraft only two working days to revise its offer before its 19 January deadline.

The move follows Cadbury’s rejection of a Kraft takeover, saying it could easily raise the capital Kraft had earlier offered through improved sales.

Kraft has asked Cadbury to prove it could generate the £700m free cash flow it said it could by 2013.