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Kraft, Cadbury Agree to $19.5B Deal
LONDON (AP) -- Cadbury Tuesday accepted and recommended to shareholders Kraft's improved takeover offer worth $19.5 billion.

The move by the British candy maker could potentially end a months-long corporate battle to create the world's largest maker of chocolate and sweets.

Northfield, Ill.-based Kraft says Cadbury's board unanimously endorsed the offer.

The revised bid is still somewhat less than some analysts believe the company is worth, but it's 50 percent higher than Cadbury's market value before Kraft went public with its approach.

Kraft still has to persuade a majority of Cadbury shareholders to accept the deal, and the door remains open until Monday for Hershey Co. to jump in with a rival bid.

Kraft says the combined companies would be the world leader in chocolate and sweets and Number Two globally in the gum market.

(Copyright 2010 by The Associated Press. All Rights Reserved.)
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