Kraft woos banks for £4.8bn funding

Kraft Foods is in talks with two investment banks to arrange $8 billion (£4.8 billion) of debt financing in order to help it to fund its £10 billion takeover bid for chocolate giant Cadbury.

Citigroup and Deutsche Bank are reported to be putting together enough debt finance to fund roughly half the bid.

But they may need to raise more if Kraft — as many analysts predict — is forced to increase its current 745p cash and share offer.