Kraft Offloads Pizza Business To Sweeten Cadbury Bid

US-based food giant Kraft has announced the sale of its North American frozen pizza business to Nestlé for US$3.7bn. Kraft has immediately set the money to use by increasing the cash-component of its offer for UK-based confectionery firm Cadbury. While keeping the overall size of its offer the same, Cadbury shareholders will now be able to receive an extra 60 pence per share in place of Kraft stock. Kraft clearly recognises that an unwillingness to hold its shares is one roadblock to its acquisition of the UK confectioner. However, the firm is also likely to need to raise the absolute size of its bid - something which this sale is likely to give it more flexibility to do.

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