Updated from 4:13 a.m. EST
has agreed to buy
in a deal valued at about 11.9 billion pounds ($19.5 billion).
Kraft, in a statement to the London Stock Exchange, said the offer values Cadbury at 840 pence a share. Cadbury shareholders also will be entitled to a special dividend of 10 pence a share.
Kraft will pay 500 pence a share in cash and 0.1874 a Kraft share for each Cadbury share.
Cadbury believes the offer represents good value for its shareholders, according to Chairman Roger Carr.
Kraft's previous offer for Cadbury was valued at a little more than $17 billion, an offer that Cadbury had called "derisory" and "unattractive."
Kraft said it expects pretax cost savings of at least $675 million a year by the end of the third year after the merger is completed.
Kraft had a deadline imposed by U.K. regulators to make a final takeover offer for the British candy and gum maker by the end of Tuesday.
The $19 billion price tag could put an end to efforts by
to make a run at Cadbury. Reports over the weekend said Hershey was planning to bid at least $17.9 billion for Cadbury.
Hershey has until Saturday to decide if it wants to launch a bid.
-- Reported by Joseph Woelfel in New York.
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