Cadbury rejects $19.6bn offer from Kraft foods

CHOCOLATE maker Cadbury has rejected a £10.2 billion ($19.6 billion) bid from US food giant Kraft.

Picture: Bloomberg.

Kraft Foods said it offered to pay 300 pence in cash and 0.2589 new Kraft Foods shares for each Cadbury share.

Cadbury shares closed Friday at 568 pence, giving the group a market capitalisation of £7.76 billion.

"The combination would build on Kraft Foods' position as a global powerhouse in snacks, confectionery and quick meals with a rich portfolio of iconic brands," said Kraft.

"Kraft Foods is committed to working toward a recommended transaction and to maintaining a constructive dialogue and is announcing this proposal as a means to encourage and further that process," it added.

Cadbury was not immediately available for comment.