Cadbury shares are edging upward today in anticipation of a higher bid from Kraft Foods. Major shareholder Standard Life has said that Kraft needs to bid over 900 pence to get its support.
The North American food giant is expected to sweeten its original takeover offer, currently valued at 769 pence, before the January 19 midnight deadline, with many analysts and investors believing Kraft will have to offer 800 pence or above to win Cadbury.
Cadbury shares were up 1.3% to 804 pence this afternoon.
Standard Life is one of Cadbury's biggest British shareholders, with a stake of just under 1%.
On Friday Cadbury's second-largest shareholder, Legal & General, reiterated that the current hostile cash and shares bid from Kraft undervalues the British group.
Under British takeover rules, a potential rival bidder to Kraft for Cadbury that has already shown its interest, such as Hershey, has until January 23 to show its hand. Cadbury shareholders have until February 2 to decide over Kraft's bid.
Hershey is still working on a Cadbury bid to top Kraft's original offer, according to sources close to the situation, and the Wall Street Journal has reported that Hershey will likely make a bid this week of at least 800 to 820 pence.
