Kraft Foods said today it was raising the cash portion of its hostile £10 billion takeover offer for Britain's Cadbury by 60 pence per share, funded by a deal to sell its North American pizza unit to Swiss food giant Nestlé.
Separately, Nestlé said it had no intention to bid for Cadbury, ending speculation about one potential suitor for the British confectioner.
Kraft said it would use the full net proceeds of the $3.7 billion pizza business sale to fund a partial cash alternative to Cadbury shareholders.
It said it will give detailed terms of the alternative by January 19th, the last day Kraft is allowed to amend its offer under a UK Takeover Panel ruling.
Cash-rich Nestlé, which this week sold a further 52 per cent stake in eye care group Alcon to Novartis for $28.1 billion, said the United States was the largest pizza market in the world with sales of about $37 billion.
The Kraft pizza business includes brands like DiGiorno, Tombstone, California Pizza Kitchen, Jack's and Delissio. Nestlé said synergies were estimated at 7 per cent of sales and would be fully realised within five years.
Reuters