Kraft rustles up some cash for Cadbury

PARIS, Jan. 5 (UPI) -- U.S. food giant Kraft said it had increased its cash offer to Cadbury, the British chocolate maker that has already rebuffed its $16 billion bid.

Kraft said the sale of its own frozen pizza division to Nestle, a $3.7 billion deal, would allow it to offer more cash to Cadbury shareholders, The New York Times reported Tuesday.

Kraft said it would provide shareholders with an additional 60 pence per share, about 97 cents. For American Depositary Shares, Kraft offered an additional 240 pence or $3.89.

The deal does not raise the intrinsic value of the offer, but may sway some shareholders who preferred more cash and less Kraft shares for their returns.

"Selling this business now not only delivers an attractive return for our shareholders, but enables us to better focus our resources on priority global brands and categories," Kraft's Chairman and Chief Executive Officer Irene Rosenfeld said in the statement.

Nestle, which raised $28 billion selling a majority position in Alcon to Novartis this week, said it "does not intend to make ... a formal offer for Cadbury," leaving Kraft with one less rival to worry about.

A Cadbury spokesman for Cadbury said, "Despite this tinkering, the Kraft offer remains unchanged and derisory," The Times of London Online reported.