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Any chocolate-lover knows that the American version is much sweeter than the bars on the shelves of our British corner shops, but despite Kraft's latest tweak to its takeover offer for Cadbury, the deal still does not look sweet enough to lure investors.
Kraft Foods added an extra 60p of cash to the original 300p per share bid it offered to Cadbury shareholders, but only as an alternative to being given new shares in Kraft, not as an extra payment. The price is still not close enough to the 850p mark that investors are holding out for. Although enough shareholders might sell up for a bit less, Kraft still needs to dig deeper into its pockets if it is to gobble up Cadbury.
Those pockets were newly enlarged today, after Kraft made $3.7 billion (£2.3 billion) selling its pizza business. The fact that it sold a lucrative part of its armoury to add to its war chest suggests the American conglomerate is zoning in on its British rival with a growing intensity.
Indeed, just because today's deal does not look to be enough does not mean Cadbury bosses can breathe easy. Of all the words Kraft spouts in its latest offer document, what is most crucial is the absence of one: the word “final” does not appear. Kraft can still raise its bid before 19 January.
Cadbury laughed off Kraft's original offer as “derisory” and repeated that sentiment today, but it might not be feeling so confident now. Like a playground bully with its victim in its grip, Kraft has clearly indicated its intention to swallow up the Dairy Milk-maker.
So while Cadbury is keen to continue making its own chocolate alone, if growing numbers of shareholders begin to jump ship its best chance of survival might lie with Hershey. Cadbury's chief executive Todd Stitzer has already made unprecedented noises about a preference for a tie-up with Hershey, whose founder started the company after being inspired by Cadbury's Quaker-run Bournville village.
If Kraft beefs up its bid offer, as seems likely after today's developments, then a Cadbury-Hershey defensive alliance might be the British firm's best chance to take control of its future.
