Kraft Foods Inc. refused to sweeten its $16.2-billion offer for British candy maker Cadbury and took the bid directly to shareholders, setting the stage for a takeover battle that could last up to three months.
U.S. food giant Kraft repeated the cash and shares terms of its original offer, which Cadbury rejected two months ago. The bid is now worth about 5% less after a fall in Kraft shares.
Cadbury, the world's second-largest confectionery group, lost no time rejecting the hostile bid from No. 5 Kraft.