Cadbury has twice rejected Kraft's bid of $17.1 billion, even as it made a second offer shifting the bid to include more cash to appease Cadbury shareholders who did not particularly want to end up with Kraft shares, The Times of London Online reported Monday.
Kraft has not made a new offer public. The deadline for a new offer is Tuesday, Jan. 19, which would give the U.S. firm until Feb. 2 to convince shareholders to accept the offer.
Cadbury Chairman Roger Carr is expected to recommend a rejection of the new bid.
Some market analysts expect Kraft in a new bid will lock in the minimum ratio for a stock swap with Cadbury. That would address concern among Kraft shareholders that the deal undervalues Kraft shares, The Times said.
Copyright 2010 by United Press International.
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