Kraft backed to succeed in Cadbury offer

Up to 14 per cent of Cadbury’s share register is estimated by brokers to be controlled by hedge funds that are betting Kraft will raise its $16.2bn (£9.8bn) offer for the UK confectioner, increasing the likelihood that its hostile bid will succeed.

Brokers predict that towards the end of the bid battle, so-called merger arbitrageurs could own more than a quarter of Cadbury’s stock, potentially shifting the outcome of the deal in Kraft’s favour.