US food giant Kraft has until November 9th to say whether it will make an offer for British confectioner Cadbury or it must walk away for six months, Britain's Takeover Panel said today.
It is now three weeks since the world's second largest confectionery group rejected an approach from North America's biggest food group worth 745 pence per Cadbury share, or £10.2 billion ($16.3 billion), at the time in cash and shares.
Kraft said it had "noted the decision and understands the implications", while Cadbury reiterated its rejection of Kraft's approach.
"Cadbury has a strong position in the global confectionery market and the board is confident in Cadbury's standalone pure play strategy and growth prospects," chairman Roger Carr said in a statement following the Takeover Panel announcement.
However, major Cadbury investors are worried chief executive Todd Stitzer may overplay his hand in fending off Kraft, with no obvious rival in sight to spark a bidding war.
Mr Stitzer is reported to have said he saw sense in a Kraft deal.
Cadbury shares were up 0.3 per cent at 801.5 pence by 1145am today, while Kraft was 0.2 per cent lower at €17.98 in Frankfurt.
Reuters