By Alan Fein

(AXcess News) New York - Kraft Foods (NYSE: KFT) hopes to see some Cadbury Plc (NYSE: CBY) share certificates dangling from its holiday stocking after making a hostile bid of $16.4 billion to buyout the UK-based maker of creamed eggs and chocolates.

Under British law, Kraft had to either formally offer an amount or withdraw any attempt to acquire Cadbury for six months.  Hence a 714 pence per share offer was made, which Cadbury just as quickly rejected with British dignity one would expect from such a global brand.

Cadbury Chairman Roger Carr told reporters that the Kraft bid "does not come remotely close to reflecting the true value of our company."

Kraft's 714 pence offer is comprised of 300 pence in cash and 0.2589 Kraft shares.

EUNN reporter Philip White said, "Investors in the UK were looking for prices ranging from $850 pence to as high as 1000," depending on who you ask, though sources say other potential bidders may come to the table which could force Kraft to raise its bid price.

Candy maker's Hershey Co. and Nestle are also looking at Cadbury, though both companies are watching the reaction Carr and other Cadbury board members have given towards Kraft's offer.  But knowing the board of Cadbury would be resistant, Kraft Foods took its offer directly to the shareholders and most likely weighed the level at which it could sway enough Cadbury shareholders to sell in order to takeover the company.

Calling Kraft an "American plastic cheese company," the granddaughter of former Cadbury Brothers managing director Egbert Cadbury said it would be sad to see one of the last British icons of business be sold to a foreign company - any company. Felicity Loudon has been outspoken critic of a sale of Cadbury from the very beginning.

Rumors are flying around London that Ms Loudon is trying to put together enough shareholders so as to prevent a sale of Cadbury at any price, but so far, few shareholders were willing to give up a chance to sell their stock at a sweet tooth price.