Ferrero formally rules out bid for Cadbury

LONDON -- Italian confectioner Ferrero International has formally declared that it won't make a takeover bid for Cadbury.

That left Northfield-based Kraft Foods with no one contesting its $19.5 billion bid for Cadbury.

Monday's announcement came on the deadline for Ferrero to make a firm offer. The maker of Nutella nut spread and Tic-Tac mints reportedly had mulled a joint bid with The Hershey Co.

Hershey ruled itself out of the running Friday.

Kraft now has until Feb. 2 to line up a majority of Cadbury shareholders to accept its offer, which is endorsed by Cadbury's board.

Shares or cash?Kraft Foods Inc. said Cadbury Plc investors accepting its recommended bid may be better off accepting the standard terms of its cash-and-stock offer, rather than electing to take a higher proportion in cash.Because of movements in Kraft's shares and the dollar exchange rate, the offer is now worth 827 pence ($13.35) per Cadbury share, compared with the 799-pence value for those who elect to receive additional cash in the so-called "mix and match facility," Kraft said today. Cadbury shareholders will also receive a special dividend of 10 pence a share.Investors "who prefer cash to new Kraft Foods shares may be able to realize greater value by accepting the basic terms of the final offer and then selling their new Kraft Foods shares in the market than they would realize by electing for additional cash under the mix and match facility," the U.S. company said.