KRAFT’S proposed takeover of Cadbury seemed odds-on last night after the last possible rival bidder pulled out of the race.

Italian confectioner Ferrero ruled itself out of a Cadbury takeover yesterday after last week’s recommended £11.9bn bid from US food firm Kraft.

Ferrero – famed for its Rocher chocolates and advertisements – had been weighing up its options over the Dairy Milk maker since November amid rumours of a joint approach with US rival Hershey. But Hershey formally withdrew from the race on Friday, clearing the way for Kraft’s takeover.

Yesterday Kraft, which makes products ranging from Terry’s Chocolate Orange to Maxwell House coffee, gave more details about the terms of its offer.

The total value of the US firm’s offer – including the 10p special dividend – has edged down from 850p to 837p because of the pound’s fall against the dollar since the end of last year.

This fall lowers the conversion price of Kraft’s shares, which are priced in dollars.

“The final offer’s value will change as the Kraft Foods share price and the USD/GBP exchange rate change,” the US company said.

Charles Stanley analyst Jeremy Batstone-Carr said UK shareholders in Cadbury were likely to dump the Kraft shares.

“UK-based investors are unlikely to want to hold Kraft stock. We believe that as many as half these holders will be looking for alternative investment destinations here in the UK,” he said.

Shareholders have until next Tuesday to accept Kraft’s offer, which will end Cadbury’s heritage as an independent business stretching back to 1824.

The combined group would have more than 40 major confectionery brands, becoming the world’s number one chocolate and sweets firm and the second biggest firm making chewing gum with the addition of Cadbury’s Trident brand.

Last week, Kraft pledged it would show great respect for Cadbury’s brands, heritage and people, but its plans for cost savings raised fears that thousands of job losses could follow.

There are echoes of the Terry’s factory in York, which Kraft shut in 2004, despite the firm being founded in the city in 1823.

After restructuring, Kraft moved production to factories in Sweden, Belgium, Poland and Slovakia, 11 years after buying Terry’s in a £220m deal.