UK regulator sets 9 November deadline for Kraft's Cadbury bid

The UK mergers and acquisitions regulator has given US food giant Kraft a six-week deadline to submit a formal offer for Cadbury or abandon the deal for six months.

Britain's Panel on Takeovers and Mergers today said that Kraft has until 9 November to make a formal offer for UK confectioner Cadbury or end its interest for six months.

The Panel said in a statement, ''Following discussions with both parties' advisers, the Panel Executive has ruled that, unless the Panel Executive consents otherwise, Kraft Foods must, by 5:00 pm on 9 November 2009, either announce a firm intention to make an offer for Cadbury under Rule 2.5 of the Code or announce that it does not intend to make an offer for Cadbury.''

It added, ''In the event that Kraft Foods announces that it does not intend to make an offer for Cadbury, Kraft Foods and any person(s) acting in concert with it will, except with the consent of the Panel Executive, be bound by the restrictions contained in Rule 2.8 of the Code for six months from the date of such announcement.''

Cadbury approached the Takeover Panel on 21 September to force rival Kraft Foods, to a "put up or shut up" bid deadline on its August $16.7-billion unsolicited takeover offer. (See: Cadbury tells Kraft to ''put up or shut up'')

Cadbury, responded to the Takeover Panel ruling saying that it has not changed its view that Cadbury would be far better off as a stand-alone company.