NEW YORK (

TheStreet

) --

Kraft

( KFT) stock has inched lower after a major

Cadbury

( CBY) shareholder reiterated its belief that Kraft's takeover offer undervalues Cadbury stock.

Kraft stock is down 1.2% at $28.80.

Legal & General Investment, one of Cadbury's five largest shareholders, has reiterated that it believes Kraft's offer doesn't justify the long-term value offered by Cadbury.

The shareholder gave a similar remark when Kraft first came forward with an offer in September. Legal & General owns more than 5.11% of Cadbury's shares, slightly less than U.S.-based Franklin Mutual Advisers' 7.7% share, according to

Reuters.

Under UK takeover regulations, Kraft has until January 19 to raise its bid of 762 pence a share and until February 2 to persuade at least half of Cadbury's shareholders to accept its offer.

Observers believe that Kraft now has

additional financial ammunition to raise its bid

, following

Nestle's

(NSRGY) - Get Report

acquisition of its U.S. and Canadian pizza business.

Hershey

(HSY) - Get Report

, who is in talks with credit-ratings companies about how to structure an offer without hurting its investment-grade debt rating, according to

Bloomberg

, has until Jan. 23 to make a decision to bid.

-- Reported by Andrea Tse in New York

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