CADBURY

Challenges of Slow Growth; Falling Tensions; Bottoming Airlines

Britain's Cadbury has few options but to look for a higher bid and more cash after Kraft's 10.2 billion pound ($16.7 billion) offer for the world's No 2 confectionery group, analysts said on Tuesday.

Kraft Foods said it was intent on pursuing Britain's Cadbury , which soared in value after it snubbed a premium-rich bid from the U.S. group, reinforcing hopes of a broader-based pick-up in merger activity.

Kraft Foods said it was determined to pursue Britain's Cadbury, which soared in value after it snubbed a $16.7 billion bid from the U.S. group, reinforcing hopes of a broader-based pick-up in merger activity.

Britain's Cadbury , the world's second biggest confectionery group, has rejected a $16.7 billion bid approach by Kraft Foods Inc., but North America's biggest food group still hopes it can clinch a deal.

Chocolate eating is on the rise in the current economic slowdown, while chewing gum is suffering, according to British confectionery giant Cadbury Plc.

Cadbury Schweppes has reported strong growth in its confectionary sales for the first quarter of 2008, with sales up 7 per cent.

Britain's Cadbury Schweppes Plc rejected a private equity bid for its North American drinks unit over the terms rather than price after it was asked to finance a third of the deal, industry sources said on Friday.

Britain's Cadbury Schweppes said on Friday it was extending the timetable for the sale of its North American drinks business due to the turbulence in debt markets, although it said buying interest was keen.

Cadbury Schweppes Plc, the world's largest confectionery group, plans to cut 7,500 jobs and close around ten plants as it seeks to catch up with the profitability of U.S. rivals after the sale of its drinks arm.

Cadbury Schweppes Plc, the world's largest confectionery group, pleaded guilty on Friday to charges of selling unsafe chocolate in Britain and Ireland during 2006 and faces an unlimited fine.

The British government won a partial victory on Tuesday as the top EU court said it could stop companies from making wholly artificial arrangements to avoid tax by setting up foreign units.

The world's second-largest food company, Kraft Foods Inc., said on Wednesday that large acquisitions would be difficult to make ahead of its full spin-off from majority owner Altria Group Inc.

Many of the world's top food companies are not doing enough to help cut the salt, fat and sugar which are contributing to a global, diet-related health crisis, according to a report on Tuesday.

The world's biggest food group Nestle is buying Kraft Foods' North American frozen pizza business for $3.7 billion and ruled out an offer for Cadbury , it said on Tuesday.