What's the difference between a good offer and a derisory one? In the case of Cadbury, it's 14%.

In recommending a modestly sweeter 850 pence-a-share ($13.89) offer from Kraft Foods, Cadbury chairman Roger Carr has yielded to the US investors and hedge funds which dominate the chocolate maker's share register. Unlike UK institutions, they were keener to take Kraft Food's cash and shares today than wait for Cadbury to realise its full potential. At 13 times Cadbury's 2009 earnings before interest, tax, depreciation and amortisation, the Kraft offer is at the low end of recent food-sector transaction multiples.