Italy's Ferrero has ruled out a rival bid for Cadbury, clearing the way for Kraft Foods to complete its £11.7 billion proposed takeover of the British confectioner.
Fellow chocolate maker Hershey said on Friday it had no intention of bidding for Cadbury, so with Nestlé already ruled out, Kraft appears on course to complete its recommended bid by the deadline of February 2nd.
"Further to its announcement of November 18th, 2009, Ferrero International SA confirms that it does not intend to make an offer for Cadbury," the Italian group said in a statement today.
Last week Kraft agreed a cash and shares deal that at the time valued Cadbury shares at 840 pence, with Cadbury shareholders also promised a 10p a share dividend.
Potential bidders Hershey and Ferrero, which had both said on November 18th they were considering bids for Cadbury, were given until 7am on January 25th either to come up with a fully financed bid or withdraw.
Shareholders in Cadbury have until 1pm on February 2nd to accept the Kraft offer, and with the deal already recommended by the Cadbury board and no obvious rival bidders seen entering the battle, analysts expect the Kraft takeover to go through.
In a separate announcement, Kraft said Cadbury shareholders who elect to receive extra cash under a mix and match facility will receive 799p rather than the current 827p under the cash and shares offer, and 3,195p per Cadbury ADS compared to 3,308p.
Reuters