Monday saw Kraft Foods Inc coming up with a 10.2 billion pound ($16.7 billion) takeover of Cadbury PLC, an offer which was instantly declined by the British maker of chocolate, gum and candy.

The offer was rejected because, as per Cadbury, it undervalued the company. Cadbury also specified confidence in its "standalone strategy and growth prospects as a result of its strong brands, unique category and geographic scope."

Meanwhile, Kraft was not disappointed and said that it will keep on looking for a transaction which Cadbury's board could support.

Kraft has Velveeta cheese product and Oreo cookies as its brands and had offered to pay 300 pence in cash and 0.2589 new Kraft Foods shares per Cadbury share, valuing Cadbury shares at 745 pence.

According to Graham Jones, analyst at Panmure Gordon & Co suggestions, shareholders hold out for at least 800 pence a share.