Kraft set to formalize hostile Cadbury bid Monday-sources

By Jessica Hall

PHILADELPHIA, Nov 8 (Reuters) - Kraft Foods Inc (KFT.N) is expected to formalize on Monday a hostile takeover bid for Britain's Cadbury Plc (CBRY.L) valued at rougly 10.2 billion pounds ($16.7 billion), sources familiar with the situation said on Sunday.

Cadbury previously rejected Kraft's informal offer two months ago, which was worth worth 745p a share, saying it made no strategic or financial sense. Cadbury's stock closed on Friday at 758p.

Still, Kraft was not expected to materially change its offer, sources familiar with the situation said.

Kraft planned to press ahead and make its offer directly to Cadbury shareholders on Monday, meeting a deadline set by the U.K. Takeover Panel to formalize its offer or walk away, the sources said.

"Monday will start the official process," said one source. "It's just a starting point," said the source, saying that Kraft could increase its offer down the road.

Kraft's move to formalize its bid starts a 28-day clock to send the offer documents to Cadbury's shareholders. When investors receive this information, a standard 60-day offer period kicks in.

Kraft declined to comment.

Cadbury's board was expected to meet on Monday to weigh Kraft's offer, according to media reports.