Kraft move for Cadbury creates takeover buzz on FTSE

Takeover excitement made a long-awaited return to the City today after US food giant Kraft revealed details of a £10.2bn (€11.5bn) bid for Cadbury.

The proposal was rejected but Cadbury’s shares were still 41% higher and well above Kraft’s offer price of 745p, as investors bet on the chances of a bidding war involving other major players such as Mars, Nestle and Hershey.