Britain's takeover watchdog today handed US giant Kraft Foods a six-week deadline to lodge a formal takeover bid for British confectionery maker Cadbury or walk away for six months.
Kraft had launched an informal £10.2-billion offer for rival Cadbury earlier this month, but the company rejected the bid, arguing that it "fundamentally undervalued" the group.
Should Kraft fail to make a formal takeover offer before the November 9 deadline, it would be unable to do so again for at least six months, according to British takeover rules.
"Kraft Foods must, by 0500 pm (1700 GMT) on 9 November 2009, either announce a firm intention to make an offer for Cadbury or announce that it does not intend to make an offer," the Takeover Panel said in a statement.
Kraft's informal bid, made on September 7, had been worth the equivalent of $16.7 billion.
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The US group has said it hopes Cadbury will eventually jump on board, while a weakening of the British pound since the bid has put Kraft in a stronger position, according to analysts.
Cadbury is the world's second-biggest confectionery company behind Mars and its chocolate brands include Cadbury Creme Egg, Dairy Milk, Green & Black's and Flake. It also makes Trident chewing gum and Halls throat sweets.
Kraft, the world's second biggest snacks group after Nestle, produces top-selling products like Kraft Singles cheese slices, Oreo cookies, Kenco coffee and Milka chocolate.