Kraft Foods Inc., the second-largest food company in the world, said that it would pursue the takeover talks with the chocolate giant Cadbury. It may be noted that Cadbury has already rejected a £10.2 billion (equivalent to $16.73 billion) takeover offer made by Kraft Foods.

However, Kraft Foods will most probably have to face competition from U. K. chocolate company Hershey Co.

Another speculation is that Hershey or Nestlé SA may come forward in partnership as a substitute to Kraft Foods.

Cadbury rejected the takeover offer, saying the bit "fundamentally undervalues" the company.

On the other hand, Ms. Rosenfeld said that Kraft Foods made a "full and fair" offer.

On Monday shares in Cadbury jumped 38 per cent to 783 pence.

Under the guidance of its CEO Irene Rosenfeld, Kraft Foods completed the purchase of the Iberian units of United Biscuits Group and Paris-based Groupe Danone SA's busicuits unit.

In case the Kraft hits a takeover deal with Cadbury, it would be able to create a company with $50 billion in yearly revenues.