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| Kraft may make higher Cadbury bid | Kraft may make higher Cadbury bid |
| (10 minutes later) | |
| Kraft Foods may increase its bid for Cadbury to a level that is accepted by the UK chocolate-maker, BBC business editor Robert Peston has learned. | Kraft Foods may increase its bid for Cadbury to a level that is accepted by the UK chocolate-maker, BBC business editor Robert Peston has learned. |
| He says the US giant may raise its offer to between 840 and 850 pence per share, which at 850p would value Cadbury at £11.7bn. | He says the US giant may raise its offer to between 840 and 850 pence per share, which at 850p would value Cadbury at £11.7bn. |
| Kraft launched its hostile takeover bid for Cadbury in December, having its previous offer of 761p rejected. | Kraft launched its hostile takeover bid for Cadbury in December, having its previous offer of 761p rejected. |
| The two firms may jointly announce the successful bid on Tuesday morning. | |
| Shares in Cadbury ended Monday trading up 14 pence or 1.8% to 807.50p. | Shares in Cadbury ended Monday trading up 14 pence or 1.8% to 807.50p. |
| Losing independence | Losing independence |
| Our correspondent said it now seems "highly likely" that Kraft and Cadbury will agree a deal that will probably be announced at 0700 GMT on Tuesday. | Our correspondent said it now seems "highly likely" that Kraft and Cadbury will agree a deal that will probably be announced at 0700 GMT on Tuesday. |
| A deal between the two companies would end the intense animosity between the companies that has been manifested since Kraft announced its desire to own Cadbury last autumn. | A deal between the two companies would end the intense animosity between the companies that has been manifested since Kraft announced its desire to own Cadbury last autumn. |
| It would also end any doubt at all that Cadbury will lose its independence. | It would also end any doubt at all that Cadbury will lose its independence. |
| There would still be a theoretical possibility that the US confectioner Hershey would come in with a higher offer. | There would still be a theoretical possibility that the US confectioner Hershey would come in with a higher offer. |
| But if Cadbury's board recommends Kraft's bid, it means that the company will be taken over. | But if Cadbury's board recommends Kraft's bid, it means that the company will be taken over. |
| Negotiations between Cadbury's bankers and Kraft's bankers are taking place overnight. | Negotiations between Cadbury's bankers and Kraft's bankers are taking place overnight. |
| Kraft has a Tuesday deadline to make its second and final formal bid for Cadbury, or else have to walk away from the deal for a year. | Kraft has a Tuesday deadline to make its second and final formal bid for Cadbury, or else have to walk away from the deal for a year. |
| Unions and analysts have both warned that there will likely be job losses among Cadbury's 70,000 workforce following a takeover. |