Kraft Foods will hold a meeting in February for shareholders to vote on plans for a share issue to help pay for its bid for Cadbury.
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The US food group wants to issue up to 370m new shares to help fund its hostile GBP10bn (US$16.08bn) offer – already rejected by Cadbury as “derisory”.
At Kraft’s current share price, a vote in favour of the share issue at the meeting, scheduled for 1 February in Illinois, would see the Milka chocolate maker raise around $10bn.
“The board has unanimously determined that issuing shares of our common stock in connection with the proposed acquisition of Cadbury, including any related financing transaction, is in the best interests of Kraft Foods and its shareholders,” chairman and CEO Irene Rosenfeld said in a statement urging the company’s investors to back the move.
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