Article: Cadbury rejects Kraft bid

British candy maker Cadbury PLC rejected a renewed 9.8 billion pound ($16.4 billion) hostile bid from Kraft Foods Inc. on Monday after the U.S. company refused to sweeten a previous offer.

Kraft's decision to keep the terms of its previously rebuffed cash-and-stock approach effectively means a lower offer for investors in London-based Cadbury because of a shift in the share prices of both companies.

The prospect of a tie-up has caused some consternation in Britain, where the 195-year-old Cadbury is a much-loved brand _ its Dairy Milk is the country's top-selling chocolate bar.

Kraft, the maker of Oreo cookies, Nabisco crackers and its namesake cheese, argued that the ...

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