Stock Market

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

Investors like the logic of the combination and few, if any, counterbidders are seen likely to emerge, raising the pressure on Cadbury's management to do a deal at the right price.

Kraft launched its bid on Monday at 300p cash and 0.2589 new Kraft shares per Cadbury share, valuing the British group at 745p at Kraft's Friday closing share price, with the U.S. group seeing annual deal cost savings of $625 million.