UK confectioner Cadbury has asked the UK Takeover Panel to enforce Kraft Foods, the largest food and beverage company in the US to a "put up or shut up" bid deadline on its August $16.7-billion unsolicited takeover offer.
The London-based Financial Times, citing people close to the matter, said today that the London-based Cadbury had approached the Takeover Panel yesterday to ask Kraft either to make a formal takeover proposal or walk away.
The Takeover Panel, an independent body set up to supervise and regulate takeovers and mergers, will now decide the time span to be given to Kraft to make a formal offer.
Once the panel stipulates a time limit, Kraft will then have to make a formal offer in that time or will not be able to make another offer to Cadbury for six months.
The paper said, citing sources that Kraft may be granted between two and eight weeks to make its offer.
Northfield, Illinois-based Kraft had made an informal unsolicited offer on 7 August to acquire Cadbury for $16.7-billion, which was rejected by the Cadbury board this month on the ground that Kraft's business model was unappealing as it differs from Cadbury's strategy of being a pure play confectionery company. (See: Kraft's low growth business model unappealing: Cadbury)