Kraft Foods (KFT) to Raise Stake in $16.7B Cadbury (CBY) Bid

Kraft Foods (NYSE: KFT), North America's biggest food group, might have to raise its $16.7B offer by up to 40% after shares in the world's No.2 candy and chocolate maker, Cadbury (NYSE: CBY), increased by almost half on news of the approach. The company's biggest institutional shareholder, Legal & General Investment Management thought the approach materially undervalued Cadbury, and supported management in opposing the deal.