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Kraft Foods offered $16.7 billion to acquire Cadbury on Monday, a hostile takeover bid that was almost immediately rejected as “fundamentally inadequate”…though Kraft CEO Irene Rosenfeld seems to be open to the idea that the offer could be raised.

In the meantime, there is speculation that Nestlé and/or Hershey could launch a rival bid.

"We trust that our proposal makes clear our level of seriousness and enthusiasm for pursuing this opportunity. We are willing to commit substantial time and financial resources to do so," Rosenfeld wrote to Cadbury chairman Roger Carr.

In a statement, Kraft said that the acquisition would create “a global powerhouse in snacks, confectionery and quick meals,” and would save the company more than $600 million in marketing and distribution costs.

Kraft also estimated that the deal would save up to $625 million a year in marketing, distribution and product development costs.
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