EU gives Kraft more time on Cadbury bid

(BRUSSELS) - Europe's competition watchdog on Wednesday extended its probe into Kraft Foods Incorporated's hostile takeover bid for British confectionery group Cadbury after the US giant offered "remedies" to antitrust concerns.

European Commission competition authorities will not now come up with a judgment on Kraft's bid until January 6 next year, from the original December 14 deadline, a commission official said.

"The date goes back because they have offered remedies," said commission competition spokesman Jonathan Todd. "That automatically triggers an extension of 10 working days," longer in this case due to the holiday season.

"We have submitted remedies in a few affected markets," explained Kraft spokesman Michael Mitchell, without giving details.

"We don't expect material divestments to be required in relation to the overall combined business.

"We are confident we will find a solution that is acceptable to all parties," he added.

Kraft, which has been repeatedly snubbed by Cadbury's management, on Friday appealed directly to shareholders with details of its offer, worth about 10.1 billion pounds (11.2 billion euros or 16.5 billion dollars) in cash and shares.

Shareholders now have until January 5 to accept the offer, which is worth three pounds in cash and 0.2589 new Kraft Foods shares per Cadbury share.

Kraft, which launched a formal takeover bid last month, is the world's second biggest food group after Nestle. Cadbury is meanwhile the second largest confectionery company behind Mars.

US chocolate maker Hershey and Italian peer Ferrero had said last month that they were mulling bids for Cadbury, which could whip up a bidding war with Kraft.