Fund managers have backed Cadbury's decision to accept Kraft's new increased bid for the confectioner.
The Cadbury board has advised its shareholders to accept a new offer of 850p a share, which includes a special 10p per share dividend for Cadbury shareholders.
It values the company at £11.5bn, far in excess of Kraft's £9.8bn hostile bid last year, which Cadbury labelled as "derisory".
The offer consists of 500p in cash, with the rest made of Kraft shares. Kraft will borrow £7bn to finance the deal.
Octopus Investments fund manager David Crawford, who bought Cadbury shares after the initial takeover approach, says the high final level offered by Kraft came as a surprise.
"I am very pleased, and happy the share price has jumped, but I am waiting to see if they bid again at a higher level," he says.
"I bought shares for this outcome and if anything it is a little more than I expected. I will hold my shares to get the 850p."
Standard Life Investments' head of UK equities David Cumming says: "We are supportive of the management's decision although the achieved price is slightly light of our stated target."
S&P Equity Research retail analyst Carl Short says the 850p per share offer has priced Kraft's competitors out of a rival approach.
"I think this deal is fairly priced. If Kraft had have come back with an offer of about 810p to 820p it would have left the door open for Hershey and Ferrero," he says.
"This deal does block Hershey, because it cannot come back with something like 860p, it would need to be 900p - which is more than likely too much for them as a smaller company than Kraft.
"The key to this deal was Nestle ruling themselves out, had it got involved the prices could have got higher."
Cadbury's share price has risen 3.65% to 837p in mid-morning trading.
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