Kraft Goes Hostile on Cadbury

Updated from 12:20 a.m. EST

NORTHFIELD, Ill. (TheStreet) -- After a back and forth battle, Kraft Foods(KFT Quote) launched a $16.4 billion hostile bid for British candymaker Cadbury(CBY Quote) on Monday.

Kraft refused to up its bid, which was previously rejected by Cadbury for being too low.

The terms of the cash-and-stock approach were left unchanged, but because of a shift in share prices it now values each Cadbury share at 717 pence, less than the previously rebuffed approach of 745 pence.

Kraft faced a looming deadline for 5 p.m. today, or had to walk away from the deal for at least six months.

"We believe that our proposal offers the best immediate and long-term value for Cadbury's shareholders and for the company itself compared with any other option currently available, including Cadbury remaining independent," Kraft Chief Executive Irene Rosenfeld said in a statement to the London Stock Exchange.

Cadbury, though, rejected the bid, saying it "does not come remotely close to reflecting the true value of our company."

The news briefly sent ADRs in Cadbury spiking downward by 2%, although they appeared to be regaining momentum just prior to the NYSE open.

-- Reported by Jeanine Poggi in New York .

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