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 BITTER TASTE AS CADBURY BID FADES
Cadbury shares have suffered a fall 
Thursday November 5,2009 By David ShandINVESTORS lost their appetite for Cadbury yesterday as hopes faded for a takeover bid at a tasty premium from US predator Kraft.
The American giant, which announced disappointing third-quarter sales earlier this week, had a 745p-a-share approach rejected by Cadbury two months ago. Analysts reckon Kraft is unlikely to add much of a sweetener to an expected follow-up hostile bid, especially with rivals such as Hershey and Nestle failing to show interest. JP Morgan analyst Pablo Zuanic said: “We now assume a lower price on lack of competing bids, lower synergy assumptions and our growing belief that Kraft could walk away.” Graham Jones of Panmure Gordon said: “There is little point in Kraft bidding aggressively against itself until it is clear whether any other bidders will emerge. We believe Kraft and Cadbury are still far apart on valuation.” Cadbury fell 11p to 766p. Well-received updates from Marks & Spencer and Next drew buyers to the wider retail sector, where Burberry was marked up 27p to 561p and Argos and Homebase operator Home Retail Group rose 15¼p to 299¼p. M&S’s decision to start selling hundreds of household brands boosted Hovis and Mr Kipling maker Premier Foods 2p to 35¾p. There was brisk trading in life and pensions group Legal & General, up 1½p to 79½p, as talk persisted of takeover interest from Resolution, which has already bought Friends Provident.British Airways, up 12p to 191¾p, and tour operators Thomas Cook and TUI Travel, 14¼p and 12½p ahead at 207½p and 239¾p, defied higher oil prices as consumer-facing stocks came back into fashion. Miners threw their significant weight behind the FTSE 100’s 70.68-point charge to 5107.89, with higher metals prices such as copper boosting producers Kazakhmys and Antofagasta, up 77p to 1197p and 42½p to 833p.
Chip designer Imagination Technologies gained 25½p to 225p as Panmure Gordon told clients to buy with a 250p target following an upbeat sales meeting. A positive analyst event showcasing its managed pub and Scottish businesses helped brewer Greene King froth up 24p to 411½p, while solid third-quarter figures from BGC Partners lifted money broker Tullett Prebon 30¾p to 371¾p. Regal Petroleum flowed 2¾p north to 87¼p as dealers noted that a Czech bank had taken 4 per cent. 
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