Kraft Is Preparing to Sweeten Its Bid for Cadbury

So far, Kraft's (KFT) bid to acquire Cadbury (CBY) hasn't made much progress. The U.K. food company has rejected the American company's offer, Cadbury's large institutional investors are supporting management and there are rumors that several other companies in the sector, including Hershey (HSY), are preparing bids of their own. The current Kraft bid is 10 billion pounds, or roughly $16 billion. Cadbury is trading above that, an indication that investors expect Kraft to lift its offer or that another suitor will offer to pay more.