Pershing Square Capital, a hedge fund run by activist investor William Ackman, has purchased a 2% stake in Kraft Foods as the US food group nears its deadline to up its offer for Cadbury.
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The US food group, which has until tomorrow (19 January) to increase its bid for Cadbury, announced the Pershing investment on Friday (15 January).
According to CNBC, Pershing is said to favour Kraft’s hostile bid to takeover UK confectioner Cadbury, providing a counter-balance to the opposition voiced by fellow activist investor Warren Buffett.
The news of increased support for the deal in Kraft’s own shareholder base comes at a crucial time for the US food giant, with the deadline for Kraft’s final proposal to Cadbury investors looming.
The UK confectioner has repeatedly labelled Kraft’s GBP10.5bn hostile takeover bid as “derisory” and industry analysts broadly agree that the US company needs to up its offer.
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By GlobalDataShould Kraft not increase its offer, it cannot table another bid for the Dairy Milk maker for a year.
A spokesperson for the US group declined to comment on the level of support the proposed acquisition has from Kraft’s shareholders.
